As reported in the March edition of Tracker, in February, the FSA issued a consultation paper on with-profits rules. It proposed to prohibit compensation and redress payments arising out of insurers' operational failures, out of any part of insurers' with-profits funds. The Financial Services Consumer Panel (FSCP), a consumer body active in the UK, has now responded. It stated that the proposal to apply these rule changes only to payments made as a result of events after the amended rules come into force is a backward step for policyholders. According to FSCP, the proposals would mean that shareholders are not liable for past corporate mismanagement and policyholders would still have to pay the costs for past mis-selling.