Life - Articles - Life companies should prepare for OCF to become standard

 According to a research paper produced by Financial Risk Solutions Ltd (FRS), under new PRIIPS Regulation the Ongoing Charges Figure (OCF) is set to become the measure by which investors are charged for life insurance products. A key component of new European Legislation to protect investors, PRIIPs (Packaged Retail and Insurance-based Investment Products) regulation will apply across asset management, banking and insurance and will change the way information is provided to investors at the point of sale - including information around the costs to be borne by the investor.

 The paper discussed why Life companies should prepare for the use of the Ongoing Charges Figure in product disclosure to become the standardised measure of charge rather than the Annual Management Charge (AMC, as well as other issues around charge disclosure, transparency over research costs and the use of dealing commissions.

 The full report can be accessed here