BNP life cover arm not regulated

Speculation is mounting whether the Financial Services Authority (FSA) will be taking action against the British National Party (BNP) after it was revealed that its latest venture, offering life insurance through Albion Life, is not regulated.

The regulator has confirmed that the firm is not on its register. However, FSA spokesperson Robin Gordon-Walker declined to comment on whether any action will be taken against the BNP. In the past, the FSA has fined or even demanded firms stop trading if they have failed to comply with its regulatory regime.

The BNP has refuted claims that Albion Life is not regulated and Phil Edwards, press officer at the BNP, argued that "it was all regulated and above board" just not through the FSA.

Jason King, managing director at Torquil Clark Life Insurance said it is debatable whether Albion Life should be regulated. "The FSA does have a regulatory activity permission but it does not cover a company that would only introduce and have no contact with the client and take no part other than just passing on the details," he said.

However, King added that the Albion Life's website portrays the firm as a life insurance company, encouraging customers to fill in quotation forms online and saying its own sales team would be in touch. If this is the case the firm would need to be fully regulated. "I would have thought this is something that the FSA should take a keen interest in as its job is to maintain consumer confidence," said King.

The people behind Albion Life are members of the BNP. Their aim is to secure "a robust financial situation for the BNP so it can carry out essential information, dissemination, recruitment and campaigning to contest elections at all levels."

The BNP encourages potential subscribers to take out life insurance with Albion Life and consider not just loved ones but "our extended family", defined as "the British family of nations" by suggesting policyholders name BNP as one of their beneficiaries.

King said special interest groups are to be commended as there is a huge protection gap. He said: "From an ethical standpoint it is a question of whether a person believes in the BNP or not. However, the party is perfectly within its right to do this as the BNP has not been outlawed."

Agreeing with King, Roger Edwards, products director at Bright Grey, said: "Anything that takes protection to a wider audience should be welcomed because the UK population is massively under-insured and most insurance companies are not doing enough to grow the market." However, he said there is little advice available with this product, and recommended that people consult an IFA who can tell them about what is available throughout the market rather than what is just available here.