EEA publishes ‘Dear Shareholder’ letter in response to UK FSA
Traded life settlement fund provider EEA has written to investors outlining three options it believes represent a way forward in light of the UK Financial Services Authority’s ongoing action against the asset class.
The UK financial regulator first outlined its concerns over investments in traded life policies back in February 2010.
Since then it launched a consultation, which closed in January 2012, on proposed guidlines around the marketing and sale of pooled investments in this asset.
The European industry is watching the FSA’s response because it concerns what is effectively a US asset being marketed into Europe. Life insurance policies have been deemed by the US Supreme Court to constitute tradable assets, whereas in the UK and much of Europe the regulations around insurance contracts are considerably different.
EEA’s letter is another in a series of responses from the industry and individual providers of funds to what is expected to be a significant regulatory tightening mandated by the FSA.
Click here to read EEA’s Shareholder letter.