Traded Life Policy Investments

In January we reported that the FSA is focusing on what it considers are the risks of Traded Life Policy Investments (TLPIs) – also known as Traded Life Settlements or Senior Life Settlements. They are pooled investments into US life assurance policies. They can be sold either directly or indirectly through other investments such as funds of funds.

The FSA view is that TLPIs are complex, high-risk products that are not suitable for the mass retail market, either for direct investment or indirectly through other products. The FSA have now produced a factsheet, as they intend to consult on a ban on TLPIs being marketed to UK investors, to erase the risks they pose to consumer’s altogether.

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