Investors have brushed off an investigation by the City’s watchdog into the practices of two listed life insurers.
Trading in Prudential (PRU) and Old Mutual (OLM) remain largely flat following Thursday’s announcement that the Financial Conduct Authority (FCA) is putting the companies under the spotlight.
Prudential’s shares were 0.4% lower at £13.34, while South African company Old Mutual was 0.8% down at 177.1p. Both stocks only recorded minor share price declines immediately after the FCA notice was published on 3 March.
The probe has been launched over concerns that long-term customers that have pensions or other savings products with these insurers have been treated unfairly compared to new customers.
This includes failing to warn long-term customers that they face exit charges if closing or transferring a product to a rival firm.
This is part of a wider investigation into the practices of life insurers and no conclusions have yet been made.
Abbey Life, Countrywide, Police Mutual and Scottish Widows will also be looked at as part of the probe.
Andrew Tyrie, Treasury Committee chairman, said he and his colleagues will be keeping a close eye on the investigation.