To ask the Chancellor of the Exchequer what estimate the Financial Services Authority has made of the monetary value of losses incurred by with-profits bond investors who were entitled to claim the guaranteed value of their investments on a market value reduction-free date but failed to do so. (325656)

The FSA does not hold the information requested.

It is a matter for individual policyholders when they decide to cash in their with-profits bond investments. However, where life insurance companies sell policies which include guarantees for market value reduction-free (MVR-free) encashment, the Financial Services Authority (FSA) requires them to treat their policyholders fairly by informing them of the existence of such guarantees at the point of sale and reminding them of those guarantees in post-sale communications. In addition, FSA rules require firms not to make an MVR unless the market value of the assets in the fund is, or is expected to be, significantly less than the face value of the policy being surrendered.