The Financial Services Authority (FSA) has decided to scrap the two proposals set out in the consult...
The Financial Services Authority (FSA) has decided to scrap the two proposals set out in the consultation paper on over-70s regulation in favour of a third option.
Guest speaker Stephen Walton, manager of the retail firms division at the FSA, revealed it had decided to rethink its consultation and add another option, which would see any investment-linked protection products excluded from being sold as a pure protection contract.
In August this year, the FSA suggested two options for changing the definition of a pure protection contract. The first was to increase the age condition to 80 instead of 70, while the second option was to remove the age condition altogether.
The regulator has now decided to look at a third option. Walton said: "While there has been overwhelming support for getting rid of descriptions altogether, we have decided to look at a third option, which would scrap the legislation for all products that do not include an investment element."
The changes to over-70s regulation will probably be announced in December or early January next year, he added.
