Last month, the FCA published its “non-objection” on LV putting proposals for its demutualisation to a member vote.
The financial watchdog said it had “scrutinised” the fairness of the proposed transaction, as well as “the process for how it is decided”.
It added its decision to not oppose the member vote followed “extensive engagement with LV”, during which it “challenged their proposals where necessary to ensure the fair treatment of their policyholders”.
The FCA’s non-objection with regards to LV’s vote on demutualisation came with a number of requirements placed on the firm to ensure members are informed.
MP pushback
Back in April, MPs aired their concerns over the fairness of the deal for LV’s members.
First announced in December 2020, the private equity sale has prompted accusations by MPs of the deal being rushed, and of LV not being “open and transparent” with its members about its intentions.
In a 76-page report by the All Party Parliamentary Group for mutuals, MPs alleged that although a deal had been agreed with Bain Capital, LV was also exploring potential sales to other non-mutuals at the same time as the company provided public reassurance to its members, which could be seen as misleading to its members.
They also said despite repeated assurances that there was no intention to alter the mutual status of the company, it was clear that plans were in place to “seek alternative arrangements” which included a change of corporate status, if not full demutualisation.
LV has since said it will provide a series of five webinars for members ahead of December 10 to keep them informed. It has also extended its opening hours to 8am - 7pm in the week, and 9am - 1pm on Saturday, as well as promised financial adviser briefings for clients.
ruby.hinchliffe@ft.com
