The European Life Settlement Association (ELSA) has stated that it is developing a Code of Practice for sellers of traded life policy investments .
Also, the body has also welcomed an address given recently by the Financial Services Authority (FSA) at the ELSA/LISA European Life Settlement Trade Mission in London. The regulator raised questions over the quality of marketing materials relating to traded life policy investments and suggested that there should be much more detailed and prominent risk warnings included in the literature.
However, the FSA made it clear that it did not fundamentally oppose the use of life settlements by sophisticated retail investors . ELSA chairman, Patrick McAdams, comments: "We welcome both the dialogue and the commitment from the FSA, in particular its assertion that it is intervening earlier by shifting its focus upstream for all complex products, including those backed by life settlements."
Life settlement backed investments, which turn life insurance policies into tradable asset, are an asset class that has expanded rapidly because of the financial crisis.




