Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

FSA launches probe into £800bn unit-linked fund sector

1 Comment
FSA launches probe into £800bn unit-linked fund sector

The Financial Services Authority (FSA) is conducting a thematic review into the governance of unit-linked funds run by life insurers, a sector it estimates to account for £800 billion in funds under management.

The FSA highlighted the governance of unit-linked funds by life insurers as an emerging risk in its Retail Conduct Risk Outlook in 2012.

In its insurance conduct supervision newsletter, the FSA said: ‘The funds under management in the unit-linked sector are currently over £800bn and will grow significantly with the introduction of pension auto-enrolment. Due to the size and importance of this sector, any failures pose a high risk to our statutory objectives, particularly the protection of consumers.’

The review will assess whether firms have adequate systems and control in place to ensure that funds are administered and managed fairly and in accordance with customer expectations, it said.

The FSA will also asses if assets backing unit-linked policies are appropriate for policy holders and that policy holder benefits are calculated fairly and accurately.

It has taken a sample of firms covering a large proportion of the market and incorporates firms of different size, nature and business models.

It expects to share the results of the thematic review in the autumn.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter