Is the FSA right in telling "with profit" fund managers it is no longer acceptable to be paying compensation claims out of orphan funds? A distinction is made between Proprietary and Mutual Companies for obvious reasons, but where will it all end? The reasoning is to punish Managers and Shareholders representatives for the mis -selling scandal so that they will not be tempted to repeat the exercise in some other fashion, but why do Assurers need to pay out orphan funds anyway? If the inherited esate is not paid out will it therefore be taxed as surplus capital or profit? Should that happen will it be a raid on endowment funds similar to the raid on pension funds, and we all know what happened thereafter.