Aegon-owned Guardian Assurance and Guardian Linked Life Assurance have been fined 750,000 by the FSA after it found serious flaws in their mortgage endowment complaint-handling procedures.The fine is the second- biggest imposed by the FSA over endowment complaints. Abbey was fined 800,000 last May while Allied Dun- bar received a 725,000 fine in March 2004. But market commentat- ors believe that the latest fine does not reflect the severity of the offence. Consumer lobbyist Which? says the FSA should have made an example of Guardian, given what it calls its “breath-taking actions”. The FSA found that Guar- dian introduced procedures that were neither appropriate nor effective and exposed 5,600 customers to financial loss by December 2004. Guardian was aware that the changes it made to its procedures would be likely to reduce significantly the proportion of complaints which it upheld and, following their introduction, the number of complaints it upheld plummeted from 71 per cent in the second half of 2002 to 22.6 per cent in the first half of 2003. FSA director of enforcement Margaret Cole says: “Guardian failed to treat its customers fairly by exposing those with a valid complaint to the risk that their complaint could be rejected inappropriately.” Adam Samuel Training & Consulting principal Adam Samuel says: “No individual has paid the price for adopting or designing the processes concerned. This is a dis- grace that the FSA needs to explain urgently.”
Tilney Investment Management has bought Clydesdale Banks discretionary investment management business for an undisclosed sum.
Gross mortgage lending in December was the strongest on record, according to figures from the Council of Mortgage Lenders.This is despite the figure falling by 6% to an estimated 26.3bn. Yet this was 25% more than the 21bn achieved in December 2004 and is the strongest figure for December on record. The figures also show […]
The FSA is offering A-Day information on its website to help consumers understand the changes to pension arrangements from April 6.
Co-operative Financial Services this week announced the creation of CIS General Insurance, insuring all new and renewing CIS motor, home and commercial products.CFS says creating the new division will provide greater clarity for CFS general insurance operation. The group says its GI net premium income was 649m in 2004 and 318m in the first half […]
According to George Osborne “people like Isas – because they’re simple”. Fiona Tait is not convinced… Contributions & bonuses What he said: “From April 2017, anyone under the age of 40 will be able to open a Lifetime Isa and save up to £4,000 each year. And for every £4 you save, the Government will […]
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The Government should make it easier for advisers to sell products that blend income drawdown with insurance to meet future care costs, according to former pensions minister Steve Webb. A paper published today by Royal London calls on the Government to introduce policy changes which allow new products to be created that pay for long-term […]
Independent governance committees at big-name pension providers are failing to safeguard the interests of savers and the FCA must take action, fresh research finds. In 2015, the FCA required contract-based pension providers to appoint IGCs to act as champions of savers’ interests. IGCs are required to publish annual reports to increase transparency and encourage comparison […]
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