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FCA drops investigation into Scottish Widows over life insurance exit charges

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  • 12/06/2018
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FCA drops investigation into Scottish Widows over life insurance exit charges
Scottish Widows will not be punished by the Financial Conduct Authority (FCA) after an investigation into exit charges given to long-term life insurance customers.

 

However, the regulator said it will raise issues uncovered in the investigation with the firm as part of its supervisory engagement.

It comes after the regulator announced probes into six firms in 2016 following its thematic review on the treatment of closed book customers.

The regulator was concerned about the levels of exit and paid-up charges being issued to long-standing customers, and the firms’ behaviour in applying those charges.

It had found that when charges were applied, the six firms may have failed to inform customers when they were incurred, such as when the policy was exited.

The regulator feared some customers could have been unaware that they would have to pay such a charge or that they have paid or are paying such a charge.

The investigations into Prudential, Countrywide Assured, Old Mutual and Abbey Life are continuing with no decisions yet made by the FCA.

Last year the FCA announced it had closed its investigation into Police Mutual with no further action.

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