Watchdog must bend its muscles to intervene in LV’s private equity acquisition, experts urge
Experts urged the city guard dog to use its power to intervene in the controversial takeover of the LV.
The Financial Behavior Oversight Organization (FCA) has given a “broader interpretation” of its authority to see if the proposed sale of a mutual insurer to US private equity shark Bain Capital is in the best interests of its clients. Transaction critics argued that it should be taken.
With growing backlash over transactions between historic life insurers and Bain, the FCA faces its first significant test under new leadership.
Call for Investigation: The Financial Conduct Authority should take a “broader interpretation” of its authority to see if the sale of LV to Bain Capital is in the best interests of its clients, critics said. Insisted
Under his leadership, Nikhil Rathi, who commanded the Watchdog earlier this year, promised to make the FCA more daring and “aggressive” in the face of potential harm to consumers.
But so far, regulators have refused to intervene in Bain’s transaction. He claims that LV can only look at previous transactions to assess whether consumers are being treated fairly.
The FCA said it could not take a broader view and consider whether the other options at the LV table (including bidding from mutual Royal London rivals) would be better for the members.
But Tory lawmaker Kevin Holinlake, a prominent activist on financial services equity, said:
Former pension minister Baroness Altman said the case “deserves proper investigation,” adding that “it could be detrimental to 1.2 million customers.”
Let me hear your voice in LV
We encourage LV members, customers, or other people who want to maintain mutual status rather than being acquired by private equity to write in writing.
You can use the wording of the letter printed on the City page of the Daily Mail newspaper (pictured here).
I have included the words to copy and paste in the letter below.
Send to LV =, Liverpool Victoria, County Gates, Bournemouth, Alan Cook, Chairman of BH12NF.
As a signator, I reconsider your decision to sell LV = to Bain Capital and instead urge you to maintain its mutual status.
Watchdog must intervene in LV’s private equity acquisition, experts urge
Source link Watchdog must intervene in LV’s private equity acquisition, experts urge