Redemptions prompt EEA Life Settlements trading suspension

The board of the EEA Life Settlements fund has decided to suspend dealings in the fund after receiving unprecedented levels of redemption requests from advisers and institutional investors.

The suspension follows a board meeting with the dealing suspension introduced at 1700 GMT on November 30. A spokesman for the firm says the suspension does not affect the ability of the fund to pay premiums as usual.

Earlier this week, the FSA warned the products are high risk, toxic products and said it aimed to ban traded life policy investments from being marketed to retail investors.

Life settlement policies were the underlying investment behind Keydata’s Lifemark products. The collapse of Keydata triggered an industry interim levy of £326m, with advisers paying £93m and fund managers paying £233m.

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