Is a fairer financial future for savers on the cards?

Regulation as red tape that ties up business and strangles the economy. It is a transatlantic political trope. Said Javid, the ambitious business secretary, is just the latest to attempt to garner political capital by promising to cut through it and save £10 billion as a result.

However, on the same day came a report that demonstrated how very necessary some regulation is.

The Financial Conduct Authority, which regulates the financial services industry, published a review yesterday of the treatment of people holding old fashioned life insurance policies – pensions, endowments, bonds and their like.

Those that hold them are often locked in for the long term. If they want to take their money out, the exit fees can be crippling. If they want to leave their policies ‘paid up’ by allowing them to run to maturity without future contributions, the fees can sometimes wipe out any potential investment gains. Communication with policyholders is poor; many have found out too late that their savings may leave them far short of their financial goals, even if they haven’t incurred any punitive exit charges.