The rule changes will come into effect on 1 June 2004.
These endowment policyholders have three years to complain following receipt of their first 'red letter' which notifies them that their policy is running a 'high risk' that it will not pay out the target amount at the end of the term.
For firms who wish to time-bar such complaints, the revised rules will require them to:
* make clear to policyholders that they have three years from their first 'red letter' to complain;
* issue the time bar warning at least six months in advance of the date from when the customer would be time-barred from making a complaint.
This notification is likely to be in a customer's future reprojection letter.
Anna Bradley, FSA's Director, Retail Themes, said:
"We are applying these measures straightaway to ensure that consumers who believe they were mis-sold their endowment policies are clear about the date their right to complain runs out and to address concerns that some consumers could unwittingly lose the opportunity to claim compensation.
"The change is just one part of a package of measures that we are working on with the industry to improve the regular information provided to consumers about their endowment policy."
A number of firms are not imposing time limits on endowment complaints received. These rules ensure that where firms do impose time limits, or decide to do so at a future date, consumers are made aware of the time their right to complain expires.
