FSA leaves policyholders in the lurch

As the Financial Services Authority backtracks on its commitment to stop mis-selling costs being charged to inherited estates, Which? chief executive, Peter Vicary-Smith, says: "The FSA has, once again, left policyholders in the lurch and sided with the financial services industry. This regulator repeatedly shows it's unwilling to stand up for the interests of with-profits policyholders.

"With bonus rates plunging and transfer penalties being introduced, the last thing people need is firms raiding with-profit funds to pay for their own regulatory failings. It's outrageous that insurance companies will be let off the hook, depriving policyholders of millions of pounds."