Clifford Chance

Protecting With-Profits Policyholders – FSA Consultation Paper CP11/5

25 March 2011

On 24 February 2011 the FSA published Consultation Paper 11/5, "Protecting With-Profits Policyholders" (“CP 11/5”). It covers a variety of issues, including the terms on which new business is written, material reductions in new business, profit margins for services provided to with-profits funds by in-house service companies, market value reductions and governance. It also addresses the specific position of mutuals. This briefing summarises the main areas of change which would take place if the FSA’s proposals in CP11/5 were to be implemented as proposed, and considers the issues arising from these changes and their potential implications for the UK insurance industry.

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