The industry regulator the Financial Services Authority has stressed that AMP UK policyholder interests will be looked after during the business demerger.
The FSA is planning to undertake a "significant review of the AMP Group's proposal to demerge its operations and seek to ensure that the UK policyholders' interests are maintained".
A spokesman for the FSA said that although a review would be undertaken, it could take months and he was unsure as to how much of it would be made public.
Our View
This is the job the regulator should be doing but it could have been a lot sooner. Whilst the FSA does look at company mergers, demergers and changes of control as part of its role, the statement about a review was seemingly posted on its website after numerous calls from AMP policyholders. However, better late than never.
If the situation is handled correctly and the review undertaken clearly with policyholders interests at the forefront, we believe that the FSA will win at least some credibility with consumers.