3rd Mar 2016 08:53
LONDON (Alliance News) - The UK's Financial Conduct Authority on Thursday said it will investigate six life insurers following a review of the treatment of closed-book customers.
The six firms are Deutsche Bank AG's Abbey Life, Chesnara PLC's Countrywide Assured PLC, Old Mutual PLC, Police Mutual, Prudential PLC and Lloyds Banking Group PLC's Scottish Widows. A total of 11 firms were included in the FCA's thematic review.
No conclusion has been reached as to whether there have been any breaches of regulatory requirements, the regulator said, adding that the investigation will not necessarily result in disciplinary action. The investigation could be extended to other firms in the life insurance sector.
"Given the long-term nature of closed-book products, it is vital that customers are treated fairly and given the right information on an ongoing basis in order to help them make important financial decisions. We expect all firms with closed-book customers to take into account the findings we have published today and ensure they are treating their closed-book customers fairly," Tracey McDermott, acting chief executive of the FCA, said.
"The practices at some firms appear to have been poor. We have particular concerns regarding how some firms communicated with their customers about exit and/or paid-up charges. We are now doing further work to understand the reasons for these practices, whether customers may have suffered detriment as a result and, if so, how widespread these issues are," McDermott said.
Chesnara, the owner of Countrywide Assured, noted the investigation, and said it will "co-operate fully" with the FCA.
Shares in Chesnara were down 4.3% at 319.00 pence on Thursday morning. Lloyds was off 0.3%, and Old Mutual was down 0.6%, but Prudential was up 0.1%.
By Samuel Agini; [email protected]; @samuelagini
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