A wide-ranging programme of actions which aim to improve the governance and transparency of with-profits funds has been put forward today by the Financial Services Authority.

The proposals set out a framework which aims to give consumers a better understanding of the way the with-profits fund in which they are invested are run and greater confidence that they will be treated fairly.

Forum Response: Consumers' Association

Allan Asher, director of campaigns and corporate communications at the Consumers' Association, told ePolitix.com: "The FSA has shown that it is unwilling or unable to take on the dinosaurs of the insurance industry. It has also failed to help those consumers trapped in with-profits funds. The Sandler review must now take up the mantel where the FSA has clearly failed.

"Transparency alone is not enough. The FSA's proposals will do little more then inform consumers that they are being ripped-off without implementing measures to stop it. It offers little protection to the ten million consumers who are currently trapped in these funds.

"Now all consumer hopes will be firmly fixed on the government and the Sandler Review. We hope they will deliver more than the city regulator and be more consumer focused."

Forum Response: Association of British Insurers

Mary Francis, director general of the ABI, told ePolitix.com: "The insurance industry has proposed change, supports change, and is ready to change.

"It is quite right that customers want more information about their policies. This is why we put forward a package of proposed improvements last year. We are pleased to see so many of the ABI's ideas reflected in today's proposals from the FSA.

"The open way that the FSA conducted this review and their recognition of the future role of with-profits is a win-win for the consumer and the industry. We will continue to work with the FSA when they enter the next phase of their review, emphasising the need for a joined up approach between the FSA and the other reviews that are currently in hand.

"Of course we will want to scrutinise particular proposals very carefully. But we need to seize this opportunity to consolidate the efforts of the different strands of work that are underway to ensure that the changes we make are of real benefit to customers in the long-term."