The regulator says no action will be taken following the thematic review although some issues identified during the probe will be “addressed.”
The FCA launched a thematic review of 11 insurers, including Scottish Widows, Prudential and Old Mutual, in March 2016, looking at whether they had been fair to longstanding or so-called closed book customers.
The review identified that further work was required to determine whether six of the eleven firms covered by the thematic review had failed to meet the FCA’s standards. These six firms were Abbey Life, Countrywide, Old Mutual, Police Mutual, Prudential and Scottish Widows.
The investigations into Police Mutual and Scottish Widows were closed earlier without further action.
All of the remaining investigations have now been closed, the watchdog confirmed today.
The FCA found the conduct of the four remaining firms (Abbey Life, Old Mutual, Prudential and Countrywide) “did not warrant enforcement action.”
The FCA said: “In each firm, some issues have been identified during the investigations, which are being addressed as part of our ongoing supervision of those firms.”
The FCA published its Final Guidance publication in December 2016. This sets out the expectations on how life insurance firms treat their closed-book customers fairly, including when disclosing the existence of paid-up and exit charges to existing customers.
The FCA says it will continue to assess life insurance firms’ adherence to required standards and principles, and “take appropriate steps where necessary.”