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Old Mutual and Pru cleared as FCA drops insurance probe

Old Mutual and Pru cleared as FCA drops insurance probe

The Financial Conduct Authority (FCA) has dropped its investigation into life companies’ treatment of longstanding customers and will take no enforcement action.

The review, initially into the actions of six companies, kicked off in March 2016, with Police Mutual cleared of any wrongdoing in September 2017 and Scottish Widows in June 2018.

The probe into Abbey Life, Countrywide, Old Mutual and Prudential has now been closed with no further action.

The regulator said that while it had found ‘some issues’ at each of these companies in how they treat closed book customers, including the disclosure of exit charges, it had addressed these as part of its ongoing supervision of the firms.

The regulator added that it will ‘continue to assess life insurance firms’ adherence to the required standards and Principles, and take appropriate steps where necessary’. 

The regulator’s investigation into closed life funds has courted significant controversy along the way. It was first reported in the Telegraph in March 2014, with the surprise announcement initially wiping £3 billion off the value of the life insurance sector.

The body was slammed by the Treasury Select Committee for the way it announced the review and then chief executive Martin Wheatley was not paid a bonus that year.  

 

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