FSA sets endowment rules

Companies that have endowment policyholders who are at high risk of a shortfall must be given explic...

Companies that have endowment policyholders who are at high risk of a shortfall must be given explicit warnings as to when their option to complain expires, new rules from the FSA state. Effective from 1 June 2004, policyholders will be given three years to complain following receipt of their first 'red letter', which notifies them their policy is running a high risk and will not pay out the target amount at the end of the term. A number of firms currently do not impose time limits on endowment complaints received. For those that do, the regulator is imposing the rules so consumers are m...