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3 years ago
UK regulator to probe fairness of insurers' old savings products
March 28, 2014 / 9:27 AM / 3 years ago

UK regulator to probe fairness of insurers' old savings products

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LONDON, March 28 (Reuters) - Britain's financial watchdog plans to investigate whether people sold pensions and savings plans in the past by insurers are treated fairly compared with new clients, according to a source familiar with the matter.

The Financial Conduct Authority will outline the review as part of a business plan for the year due to be published on Monday, the source said.

Among the issues to be examined in the review are whether exit fees imposed on customers who wish to withdraw funds are fair.

The policies being investigated were written before 2000 when British interest rates were higher, which influences where exit fees are set, the source said.

Shares in British insurance groups such as Resolution , Aviva, Prudential, Standard Life and Legal & General were trading lower on Friday morning after the Daily Telegraph newspaper reported the probe. (Reporting by Chris Vellacott; Editing by Alex Smith and Pravin Char)

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