|
|
FSA Admits private warnings to endowment mis-sellers |
The ongoing battle between the FSA and Legal & General has ended up in the courts following the FSA publicly accusing Legal & General of 'widely' mis-selling endowment mortgages and fining them £1.1m.
At the London Law Courts the FSA revealed that it had delivered private warnings to firms suspected of mis-selling. The FSA was made to disclose this information by Legal & General as the firm appealed against the fine.
L & G claimed that the FSA should have offered a private warning rather then the open condemnation and fine it had decided to deliver.
L & G drew comparisons between their company and a small IFA who were also under the gaze of the FSA for mis-selling. The IFA, who only had five advisors at the time, had been identified by the FSA as having 'procedural defects', as did L & G. However, the IFA sold 13 endowments in the last quarter of 2000 while L & G sold 6% of all endowments in 1996.
At the hearing the FSA stated it had ruled that the IFA posed only a limited risk to consumers and therefore deemed a private warning was appropriate.
Apr 28, 2005
Email this article
Previous Page
|
|
Take the test
Our easy to use form will soon let you know whether we are able to represent your endowment claim.
Click here to take our test
Lloyds TSB plc has allocated a further £110 million to compensate endowment policyholders. This is in addition to the £250 million which was set aside to pay compensation in 2003.
Lloyds TSB plc to impose a time bar on endowment policyholders that were mis-sold their policies in order to prevent them from making a claim
Reported in the Daily Telegraph December 2004
Mortgage endowment policyholders are collectively going to face a shortfall estimated at £ 40 billion
The average amount of compensation where a policy has been mis-sold is estimated to be £3,000
Source ABI (The Association of British Insurers) 2006
|
|
|
