14 May 2012
Further to my letter of 19 March 2012, the UK Financial Services Authority
(“FSA”) has now concluded its consultation into the marketing of Traded Life
Policy Investments and the results can be seen in its Finalised Guidance Note:
It is interesting to note that the FSA did not repeat the emotive language
used in its notes and press release issued last November and it acknowledged
that life settlements may be suitable for particular retail clients, provided
that introducing advisory firms are able to provide detailed and robust
justifications for their suitability assessments.
You will see that the FSA uses the term Unregulated Collective Investment
Scheme (UCIS). Your fund is, of course, regulated by the Guernsey Financial
Services Commission and, throughout the duration of its listing, is subject to
the rules of the Channel Islands Stock Exchange.
The Directors of your fund are aware that currency hedging, as well as income
payments for the distribution classes, are issues causing concern and
uncertainty. At this stage I am afraid I am not able to provide any more
detail but will do so as soon as circumstances permit.
The other issue of course is that shareholders want to know when the fund will
lift its suspension. My best estimate is several months at
least. However, we are now proceeding to set out fuller
details of the options for the EEA Life Settlements Fund outlined in my letter
referred to above.
I will write to all shareholders again shortly to canvass their opinions on
I would urge you to contact your Financial Adviser if you have any questions
Also, I am pleased to announce that Simon Shaw has joined the Board of the
fund. Simon brings considerable skills to the board as we
move forward. Details of Simon’s career are available on
the EEA website, www.eeafmg.gg.