FSA: Certain life policy investments are not feasible

The traded life policy investments (TLPI) market is suffering from a number of problems and there is no way that it can provide a viable option for mainstream investors, the Financial Services Authority's head of investments has said.

Speaking to ifaonline.com, Peter Smith noted that TLPI's are "complex products with a number of inherent risks" and they should only be made available to people who have experience in investments.

And he added that the dangers that accompany these types of ventures are real and include volatility of returns, liquidity, potential for loss and counterparty risk.

Doug Head, chief executive of the Life Insurance Settlement Association (LISA), was quoted by the news provider as saying that he wants to keep the markets open, so that people who do not have any problems with the product can continue to use it.

The LISA aims to promote integrity and development for the market that it serves.