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03 March 2010

SL supports FSA moves to clean up Traded Life Settlement market.

In the light of the FSA's comments on the secondary life market at the European Life Settlement Association's conference last week, SL Investment Management, the UK's oldest and most established secondary life asset manager responds:

Jeremy Brettell, Chief Executive, says:

"As a specialist in this asset class, with a total of 20 years in the TEPs market and experience in Life Settlements since 2003, we welcome the FSA's renewed focus on the sector as it may ultimately help to separate the wheat from the chaff. We wholeheartedly support any moves that will raise industry standards.

There are three key issues to address; valuation methodology, transparency and the educational aspect of this relatively young and little-understood asset class by investors and industry colleagues alike.

Some of our competitors have been claiming returns based on over-inflated valuations that we simply cannot sanction. Our own valuation methodology is conservative; backed by an in-house team of 13 qualified and experienced professionals that includes 9 members of the Institute of Actuaries, whereas some companies rely entirely on consultants which we believe is an inadequate approach.

We also take the greatest care and diligence in making sure our literature and supporting marketing materials are user friendly and transparent. Our recently launched 'Introductory Guide to Investing in Traded Endowments and Traded Life Settlements' adheres to this principle and feedback from colleagues has been very positive. We are aware that education is an important part of raising levels of understanding of the asset class and we will support the FSA in any way we can - whilst at the same time asking that not all companies are 'tarred with the same brush'."

SL is committed to raising industry standards, working alongside the European Life Settlement Association (ELSA); its Investment Director is Patrick McAdams, the Body's Chairman.