FCA to investigate 30 million zombie fund policies

The Financial Conduct Authority is to launch an investigation in to 30 million insurance policies sold across three decades, looking for signs they were "unfair" to customers, according to reports.

The FCA has concerns that pensions, endowments, investment bonds and life insurance policies sold in the UK between the 1970s and 2000 subjected customers to "unfair" conditions. In particular, the FCA is preparing to act on exit fees from such policies, which currently penalise savers who want to switch providers. According to the Daily Telegraph, the FCA has said it might "intervene on exit charges" as a result. A move to tackle zombie funds could shake up the insurance and savings markets in a huge way and free up money to be invested in new products. Many savers with legacy ...