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LIFE SETTLEMENTS; SL SAYS MARKET DETOX MAY LEAD TO SOME CASUALTIES, BUT THE GOOD WILL THRIVE
SL Investment Management (SL), one of the UK's leading
Life Settlement product providers, claims that the asset class is
poised on the brink of maturation on both sides of the Atlantic due
to a combination of increased regulation and
July 2010 saw the publication of two significant reports on the
future of life settlements, one by the Securities and Exchange
Commission Taskforce (SEC) and the Government Accountabilities
Office (GAO); The GAO Report concluded that the option to sell a
policy on the secondary market provided a valuable consumer benefit
for sellers, while both highlighted the need for increased
regulation at federal rather than state level to provide universal,
and hitherto unseen, protection for investors.
SL believes that increased regulation will lead to increased
transparency in the supply chain where some practices and
commissions have been of concern, and will result in the demise of
some middlemen in the US.
Closer to home, UK fund providers will see a continued cull;
liquidity and good governance will determine the winners and losers
in fund provision. The lessons of the past will be demonstrated
with fee transparency coupled with a rigorous approach to managing
liquidity: essential attributes for institutional investors.
This sea change is warmly welcomed by SL Chief Executive
Officer, Jeremy Brettell who says:
"There are a number of reasons why the life settlements market
place is set to thrive; supply side strength and stability is
combining with demand side market maturity. And this, coupled
with the industry detox taking place due to increased regulation on
both sides of the pond will create the right conditions for well
governed market players with the highest ethical standards to surge
forward during the next few years."