UK - The Financial Services Authority (FSA) has today confirmed that it has reviewed and assessed the compromise scheme proposals being put to Equitable Life's with-profits policyholders to ensure that the interests of all policyholders have been properly and fairly taken into account.
John Tiner, FSA managing director, said: The FSA has already said that a successful compromise would, in principle, offer the best prospect of bringing stability to Equitable Life’s with-profits fund and so improving the outlook for policyholders.
Having taken into account all the relevant considerations, we have concluded that the proposed compromise now put forward is a fair offer for the rights and claims given up.
The FSA was not required to approve the proposed compromise but it does have powers to take action in order to protect the interests of policyholders. It has concluded that the compromise is a fair offer and it saw no reason to intervene to stop the proposals being put to policyholders. However, the FSA’s assessment of the proposed compromise does not constitute a recommendation.
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