Investors Need More With Profits Advice

A large number of investors, with a combined £190billon invested in with profits funds, are not able to obtain any meaningful information about their savings say’s a financial consumers report.  

Concern is growing over the operation of with profits funds, which are often marketed as endowments, bonds, savings policies and life assurance, as they are likely to be managed by a panel of company men.  Closed funds are also an area of concern as they are performing poorly, due to the lack of new business.  A fee is also payable, should an investor wish to move his/her money.  

The Financial Services Consumer Panel is calling for the industry to ensure that all customers in these funds have access to an independent advice and that information supplied by the companies is clear and understandable.  

Our view

We agree that the industry as a whole needs to address this issue but does not see the need for a dedicated trade association.  We suggest we all keep working with the current lobbying group organisations to improve the service to policyholders.

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