Five million savers lose out

Following on from a letter to the Chief Executive of the Financial Services Authority (FSA), Peter Vicary-Smith, Chief Executive, Which?, expresses disappointment in the FSAs decision affecting how much savers receive from the £14 billion surplus in withprofits funds at Prudential and Norwich

'This is the worst possible advert for the insurance industry at a time when confidence in the financial services industry is at an all-time low. The FSA has once again failed to address the needs of policyholders and sided with those it is meant to be regulating.

"Their decision to allow money in inherited estates to be used to subsidise new business or pay shareholder tax bills will result in five million Norwich Union and Prudential policyholders losing out on thousands ofpounds each.

'In the light of today's decision, we will be exploring all legal avenues open to us that may help to protect policyholders.'