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FSA to rule on Royal London Co-op acquisition

by Alex Steger on Jan 08, 2013 at 08:27

FSA to rule on Royal London Co-op acquisition

The Financial Services Authority (FSA) is set to meet later this month to discuss removing a significant barrier to Royal London’s planned acquisition of the Co-op’s life assurance business, according to reports.

The Financial Times reported that Royal London needs to secure a waiver from the regulator’s usual rules to make a profit from the administration of the Co-op’s life assurance unit and that this was the last remaining regulatory hurdle to be cleared, 18 months after the Co-op entered talks with Royal London.

According to the FT the delays to the deal are in part because Royal London requires a waiver from restrictions on what insurers can charge with-profits funds to administer their assets.

2 comments so far. Why not have your say?

Paul Howard via mobile

Jan 08, 2013 at 09:09

Should that read "rip out as much of the assets as possible and turn it into another zombie fund"?

Anyone know of any with profit funds that have done better post acquisition?

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Ric Green via mobile

Jan 09, 2013 at 07:06

PB - a good point. The answer is probably the same as the one for "how many advisers (truthfully) have never advised clients to invest in with profits funds?". If ever there was a product for its time that is it.

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