Lifeline for with-profits mutuals

The FSA has responded in consultation paper 12/38 to the concerns of the mutual with-profits sector, which faces a decline in new with-profits business and potential firm closures. Some of the regulatory rules and guidance are too prescriptive for those firms remaining in the sector and effectively prevent mutual insurers moving beyond their with-profits funds and into new non-profit business, even if they think this would be fair to all policyholders and in members' interests.