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Life insurance company Sun Life of Canada has been fined £600,000 for poor management of its £1.2bn with-profits investment fund. Its fund managers carried out two huge derivatives deals in 2008 and 2009, to stop the fund becoming insolvent if share prices fell further. But the vitally important deals were carried out without the explicit approval of senior directors.
The FSA said the firm's supervision had been "unclear and inadequate". The regulator did not dispute the merit of the two deals, which affected the investments of 114,000 life insurance and pension policies. But it said the poor oversight by senior management had "led to an unacceptable risk that proper independent judgement would not be applied to the transactions".....Read more here: BBC News - Sun Life fined £600,000 by FSA for poor management
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