To ask Her Majesty's Government what regulations govern investment products of insurance companies to ensure they represent good value for investors at the time of purchase and throughout the life of the investment; and who enforces those regulations. [HL4575]

The Financial Services Authority has an extensive set of requirements that apply to the marketing and selling of these products and to the way that the companies that offer them manage their business. These requirements have a number of purposes. They aim to ensure that the investor receives appropriate information about the product, including on the costs and risks of investing, so as to be able to make decisions on an informed basis. Where advice is given, any product recommended must be suitable for the needs of the investor. Other parts of the regulatory regime are concerned with the maintenance of firms' financial soundness and with the fair treatment of customers including responding to any complaints. The Financial Services Authority monitors the operation of this regulatory regime through a risk-based supervisory system.