European Life Settlement Association (ELSA) releases code of practice

by Artemis on October 6, 2010

The European Life Settlement Association (ELSA), who recently set up a regulatory committee, have now released a code of practice which aims to provide industry standards for its members to use which will help to protect investors in this market.

The code of practice aims to address various risks such as liquidity, portfolio, concentration of risk for retail investors, commissions, fees, safekeeping of assets or collateral, couterparty risk, longevity risk and U.S. malpractice. Members are advised that they must comply with the code of practice or they will be suspended or thrown out of the association.

Greater transparency and a code of conduct that is adhered to will help to make the life settlements market a safer place for investors and more accepted as an asset class. ELSA are doing good things to address issues with the asset class and have been consulting with the UK Financial Services Authority to ensure its codes are practical.

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