This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-26780863
The article has changed 13 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| City watchdog to probe 30m financial policies | |
| (35 minutes later) | |
| The City regulator is to investigate about 30m insurance company policies over concerns that long-term customers are subject to "unfair" conditions. | |
| The investigation will include pensions, endowments, investment bonds and life insurance policies sold in the UK between the 1970s and 2000. | |
| The Financial Conduct Authority (FCA) will look into policies which penalise savers who want to switch providers. | The Financial Conduct Authority (FCA) will look into policies which penalise savers who want to switch providers. |
| The FCA told the Daily Telegraph it might "intervene on exit charges". | |
| 'Zombie' funds | |
| A large number of policies sold to consumers in the 30 years leading to the millennium include terms which penalise those attempting to switch to a cheaper provider. | A large number of policies sold to consumers in the 30 years leading to the millennium include terms which penalise those attempting to switch to a cheaper provider. |
| Some savers face losing up to half of their savings if they move to another company. | Some savers face losing up to half of their savings if they move to another company. |
| The FCA also said it feared "zombie" funds, which are closed to new clients, are being used by insurers to pay bills from other parts of their businesses. | The FCA also said it feared "zombie" funds, which are closed to new clients, are being used by insurers to pay bills from other parts of their businesses. |
| Details of the investigation will be published on Monday, as part of the FCA's annual business plan. | Details of the investigation will be published on Monday, as part of the FCA's annual business plan. |
| Clive Adamson, the FCA's director of supervision, told the Daily Telegraph: "We want to find out how closed-book products are being serviced by insurance companies, as we are concerned insurers are allocating an unfair amount of overheads to historic funds. | |
| "As firms cut prices and create new products, there is a danger that customers with older contracts are forgotten," Mr Adamson added. | "As firms cut prices and create new products, there is a danger that customers with older contracts are forgotten," Mr Adamson added. |
| "We want to ensure they get a fair deal." | "We want to ensure they get a fair deal." |