The Financial Services Authority (FSA) will conduct a review into the £800bn unit-linked fund sector.
In the regulator's Retail Conduct Risk Outlook 2012, it identified the governance of unit-linked funds by life insurers as an emerging risk. The FSA expects the funds under management in the unit-linked sector to grow significantly with the introduction of pension auto-enrolment. In its latest insurance conduct supervision newsletter, the FSA said that due to the size and importance of this sector, any failures pose a "high risk" to the FSA's statutory objectives, particularly the protection of consumers. The regulator's review will assess whether firms have adequate systems and ...
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