The industry regulator, the Financial Services Authority (FSA), propose to ban life offices from using their with-profits funds or orphan assets to pay their fines. This would basically mean that publicly owned life offices would not be allowed to use policyholder funds to settle fines imposed by the regulator.
IFAs agree that this is a positive move as it forces life offices to consider their moves carefully before they act, therefore, protecting policyholders but penalising shareholders.
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