Watchdog must intervene in the takeover of LV’s private equity, experts insist

Watchdog must flex its muscles to intervene in private equity takeover of LV, experts urge







The city watchdog must use its powers to intervene in the controversial takeover of LV, experts have urged.

The Financial Conduct Authority (FCA) should give a “broader interpretation” to its powers to investigate whether the proposed sale of the mutual insurer to US private equity shark Bain Capital is in the customer’s best interests, critics of the firm have argued. deal.

As opposition grows over the deal between the historic life insurer and Bain, the FCA faces its first major test under new leadership.

Probe call: Financial Conduct Authority must take 'broader interpretation' of its powers to investigate whether sale of LV to Bain Capital is in client's best interest, critics argued

Probe call: Financial Conduct Authority must take ‘broader interpretation’ of its powers to investigate whether sale of LV to Bain Capital is in client’s best interest, critics argued

Nikhil Rathi, who took over the watchdog’s helm earlier this year, has pledged that the FCA under his leadership will be bolder and “more proactive” in the face of potential harm to consumers.

But so far, the regulator has refused to intervene in the Bain deal. She has claimed that she can only look at the deal presented to her by LV and assess whether consumers are being treated fairly.

The FCA said it is unable to take a broader view and consider whether other options on the table for LV – including a rival bid from fellow joint Royal London – might have been better for members.

But Tory MP Kevin Hollinrake, a prominent champion of fairness in financial services, said: “They should see if the LV board is doing this deal for members because they suspect they have their own interests at heart.”

And Baroness Altmann, a former pensions minister, said the case is “worth a thorough investigation” and added that “it could harm 1.2 million customers.”

Make your voice heard on LV

We encourage LV members, clients, or others who would like it to maintain its mutual status, rather than being bought out by private equity, to write it.

You can use the wording from the letter printed on the City pages of the Daily Mail (shown here).

We have included the words that you can copy and paste below into a letter.

Send it to Alan Cook, Chairman of LV=, Liverpool Victoria, County Gates, Bournemouth, BH1 2NF

Dear Alan Cook,

I, the undersigned, urge you to reconsider your decision to sell LV= to Bain Capital and instead maintain the mutual status.