Monday, July 16, 2007

Bad Management and Inept Regulation

Bad Management and Inept Regulation

A recent article in the Daily Telegraph about the ongoing endowment scandal, hits the nail firmly on the head when it comes to the question as to why these useless products have performed so badly.

Answer:

-Bad management from the insurance companies

-High costs levied by the insurance companies for their bad management

-Inept regulation from the FSA, forcing the insurance companies to invest in under performing assets.

No wonder the hapless endowment policy holders feel that they have been screwed!

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