Which? : many with-profits customers not been treated fairly

As the Financial Services Consumer Panel announces new research showing that many with-profits customers have not been treated fairly by their providers, Dominic Lindley, principal policy adviser, Which?, says: “Too many policyholders don’t have access to independent advice and may be trapped in funds with little prospect of good returns. The FSA must investigate ways of freeing these consumers so that, where appropriate, they can move to better value products. It is also vital that policyholders receive a fair share of the gains from the consolidation of closed with-profits funds.

“This report shows that providers have too much control over how they define and interpret what constitutes treating their customers fairly. The FSA has basically followed an approach that allows the industry to mark its own exam papers. It must introduce meaningful reform to ensure that these funds are run in the best interests of policyholders.”