The Financial Conduct Authority (FCA) has announced that its remaining investigations into firms following its thematic review into the fair treatment of longstanding customers in the life insurance sector have each been closed.
The regulator launched the investigation following a thematic review, published on 3 March 2016. This identified further work was required to determine whether six of the 11 firms that were involved in the thematic review had failed to meet our standards. These six firms were Abbey Life, Countrywide, Old Mutual, Police Mutual, Prudential and Scottish Widows.
The investigations into Police Mutual and Scottish Widows were closed earlier without further action.
All of the remaining investigations have now been closed. The FCA found the conduct of the four remaining firms (Abbey Life, Old Mutual, Prudential and Countrywide) did not warrant enforcement action.
In each firm, some issues have been identified during the investigations, which are being addressed as part of our ongoing supervision of those firms.
The FCA published its Final Guidance publication in December 2016. This sets out the expectations on how life insurance firms treat their closed-book customers fairly, including when disclosing the existence of paid-up and exit charges to existing customers.
The regulator says it will continue to assess life insurance firms’ adherence to the required standards and principles, and take appropriate steps where necessary.