TSC report on regulation of with-profits’ inherited estates – Consumer Panel response

19 June

In response to today’s report from the Treasury Select Committee on inherited estates, the Chairman of the Financial Services Consumer Panel, David Lipsey, said:

“With-profits policyholders deserve a better deal than they are getting from providers on redistribution of inherited estates.  There is a lot of money at stake and what is happening to it is far from transparent. The Consumer Panel has nagged away at the FSA on the issue and we are glad at the progress that it has made - but like the Treasury Committee, we want more action, more quickly. On the basis of research we commissioned last year, we had told the FSA it needs to take steps to ensure the independence of with-profits committees, and to apply the principles of Treating Customers Fairly to the running of with-profits funds.

The sooner the firms involved stop defending the indefensible, the better for consumers - and in the long run for the financial services industry too.”

 

Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.
   

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on our website – www.fs-cp.org.uk.
   

3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.
   

4. There are currently twelve members of the Panel as listed below (for further information on individual members, see the Panel's website – www.fs-cp.org.uk)

   Lord Lipsey (Chairman)
   Adam Phillips (Vice Chairman)
   Kay Blair
   Michael Chapman
   Stephen Crampton
   Caroline Gardner

   Jenny Hamilton
   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart