FCA closes long-term 'fair treatment' investigation of life companies

Following 2016 thematic review

The Financial Conduct Authority (FCA) has closed its investigation into the fair treatment of longstanding customers in the life insurance sector, after concluding its probe "did not warrant enforcement action".

The regulator launched the investigation after a thematic review, published in March 2016, found further work was required to determine whether six life insurance firms - Abbey Life, Countrywide, Old Mutual, Police Mutual, Prudential and Scottish Widows - had failed to meet its standards.  The FCA investigated the firms' behaviour around disclosing exit and paid-up charges to customers after December 2008, when regulatory rules around treating customers fairly took effect. It sought to establish the reasons for the practices within firms, whether customers suffered detriment as a resu...