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How strange that the FSC through their Chief Executive has stated that legacy products should be closed down and clients moved to newer products on offer.
Apart from the obvious, such as CGT and age/health restrictions, who has decided that the terms offered on newer products are better than the existing legacy products?.
It seems to me, members of the FSC (viz life companies) have coerced clients to leave legacy products by unmercifully increasing the premiums on those products to the extent that they have tried forcing those clients to migrate to newer products offering inferior contract terms .
You just have to exam the morality of life companies who have decided to charge premium on old legacy products for a period because it suited them but now future profitability is at risk because of contingent liabilities now being exposed under those legacy products.
Why those conducting reviews into the reasons behind the FSC push to get rid of legacy products can't see this, is bewildering.