Hacked by Loard Mahdi

Read more...

Breaking news from the BBC Paper tax returns to be replaced by digital by 2020

Read more...

Smuggling gang jailed for £50m tax and VAT fraud.

Read more...

HMRC net 500 million 14/09/12

Read more...

Whitehall tax collection needs to be 'efficient'

Read more...

Contact Us

News Items

Tax Tips

Brilliant with numbers
Great with people
Clear and precise with advice
Timely and cost effective
In touch with issues that face our clients
Mindful of our client’s long term strategic goals


Call us now on 023 8083 6900 ABDS Home

News - 28 March 2014

City watchdog to probe 30m financial policies

The Financial Conduct Authority (FCA) is to investigate firms running 30 million old insurance policies worth £150bn over concerns about "unfair" terms and conditions. The investigation will look at pensions, endowments, investment bonds and life insurance policies sold in the UK between the 1970s and 2000.

Tonmoy Kumar, Manager of the Accounts Department of ABDS comments:
“The FCA said it was concerned that companies were allowing old policies to stagnate, and were not giving the same priority to policies sold years ago as they did to new policies. A large number of policies sold to consumers in the 30 years leading to the millennium include terms that 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.”

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.

Concerns that will be covered include:

  • Fears that changes are being made to investments to benefit firms, not customers
  • Worries that "unfair" overheads are allocated to historic funds
  • Concerns that companies are failing to regularly review these policies
  • Issues over the communication sent by companies to policyholders

Clive Adamson, the FCA's director of supervision, said:
"As firms cut prices and create new products, there is a danger that customers with older contracts are forgotten. We want to ensure they get a fair deal. As part of the review we will collect information to establish whether we need to intervene on exit charges.”

The financial services industry has been scarred by several high-profile scandals during the past few decades involving the mis-selling of policies such as mortgage endowments, personal pensions and payment protection insurance.

Millions of endowment policies were sold in the 1980s and 1990s, typically as a method of repaying mortgages, often with unsubstantiated claims that they were guaranteed to pay off the customers' home loan. Millions of pounds were subsequently paid in compensation.

If you need any help and advice on Business Financial Planning and Development, don’t hesitate, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar NOW to discuss how ABDS can help in all your Business planning.

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail: abds@netaccountants.net

Brilliant with numbers   
Great with people  
Clear and precise with advice
Timely and cost effective 
In touch with issues that face our clients
Mindful of our client’s long term strategic goals

« Back to News