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Life settlements get education comittee
An education committee has been established to help bring greater transparency to the life settlements market.
The European Life Settlement Association (Elsa) has started an education committee in a bid to bring more education, transparency and provision of information to the public, media and regulators.
Life settlements, which turn US life insurance policies into tradable assets, expanded rapidly after the financial crisis due to having no correlation with market risk, as they have no stock, bond or property exposure.
But the Financial Services Authority recently underlined the need for assessment and clarity in marketing literature, given that life settlements carry the risk of longevity and are relatively illiquid.
The committee will serve as a source of independent information and give advice to those interested in understanding life settlement-backed investments, Elsa said.
A code of practice is also set to be produced, with input from Elsa members.
The committee will be chaired by life settlement expert Michael Fugler of Welcome Life Financial Group.
He will be joined by Richard Morris at Commerzbank, Jose Garcia at Carlisle Management Company and Tim Roberts at Catalyst Investment Group.
