CP11/5 set out the FSA’s proposed changes to the way in which with-profits funds operate. This aimed to address the issues raised by the with-profits regime review (WPRR), published in June 2010, and Project Chrysalis.
The aim was to establish rules and guidance to ensure that existing with-profits policyholders are protected. CP11/5 proposed significant additions and, whilst some of these have been dropped, a considerable number remain unchanged or in amended form.
It is important that firms writing with-profits business are aware of and consider the impact of the new rules and
guidance which came into effect on 1 April 2012. Some transitional arrangements exist delaying compliance to 1
July 2012 or 1 October 2012 in a number of places.
This note highlights some key points from PS12/4.