FCA Investigation Outcome for Closed Life Insurance Products
You may have read that the Financial Conduct Authority (FCA) began an industry-wide review of the fair treatment of longstanding customers in the life insurance sector in 2014. Police Mutual was one of the companies asked to participate. This review looked at products we no longer sell or market to members including Low Cost Endowments, Platinum Bonds, Minimum Low Cost Endowments, Capital Growth Bonds and Top Up Pension Plans.
As a result of the review, the FCA announced in March 2016 that it would investigate six firms including Police Mutual to determine whether there was any evidence of breaches of its rules that might merit further action and whether any customers may have suffered any detriment. FCA’s investigation was focussed on whether we had provided members of these products sufficient information to take informed decisions.
We are therefore pleased that FCA announced today (7 September 2017) that it was closing its investigation into Police Mutual with no further action required.
We are very supportive of FCA’s agenda in seeking higher standards from firms in the way they are expected to treat longstanding customers fairly. Even though the products in scope of the investigation were a very small part of our business, these are standards we also would want to set ourselves as a not for profit mutual more widely. Our belief that we had met requirements was also supported by the independent reviews we commissioned ourselves and at no time was there the risk of our members losing out.