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A pig of a year

The big news of 2002 came early on with the January publication of CP121 outlining the FSA&#39s plans for depolarisation and the defined-payment system.

The PI nightmare started in February, with prem-iums rocketing over endowment misselling fears.

In February, we reported that Misys was set to outsource some comp-liance processing to India, a move that was “exclusively” revealed on the front page of a rival nine months later.

In March, Inter-Alliance received an £18m cash injection from the City. Chairman and chief executive Keith Carby was upbeat about the deal and pledged to be in profit within two years.

Tenet had a busy month in May, when both Norwich Union and Friends Provident each bought a 10 per cent stake in the group for a total of £19m.

In June, the FSA&#39s head of with-profits review Eleanor Linton labelled with-profits a misnomer. She said the name created confusion and questioned whether the name with-profits could be applied to funds that did not participate in companies&#39 profits.

Royal & Sun Alliance was hit with a £1.35m fine from the FSA in August for pension misselling. The record fine was for the life office&#39s second offence under the pension review and almost doubled the £650,000 fine incurred by Prudential in 2001.

In September, research commissioned by Money Marketing revealed that 80 per cent of the public would not pay fees for financial advice. By the end of October, the FSA had dropped the defined payment system in favour of Aifa&#39s menu system, leaving IFAs free to be paid commission.

In November, MPs urged the FSA to look at setting up a mutual PI system. The FSA said it would look at the possibilities but a scheme would need the support of product providers.

As the year drew to a close, Misys moved to merge all its five networks in the new year, bringing a quarter of all IFAs in the country into one giant network.


IMA welcomes reforms but wants action on IPAs

The IMA has welcomed the Government&#39s intention to simplify the regimes governing pensions tax but is calling for further measures to be taken on Individual Pension Accounts. Chief executive Richard Saunders says: “We need to look closely at the detail, but at first sight, removal of the complex limits on annual contributions to personal pensions […]

RBS fined £750,000 over ID failures

The FSA has shown it is taking its money-laundering responsibilities seriously, hitting the Royal Bank of Scotland with a £750,000 fine for failing to run identification checks on prospective customers.This is the first time the regulator has flexed its regulatory muscle in the moneylaundering arena since it acquired the powers at N2 on December 2001. […]

Record £4m FSA fine for Credit Suisse First Boston International

The FSA has slapped its biggest ever fine of £4m on Credit Suisse First Boston International for trying to deceive the Japanese regulator.The fine relates activities by UK authorised company between 1995 and 1998 when the FSA says CSFBi concealed and removed evidence about its business in Japan to evade tax.FSA managing director Carol Sergeant […]

Ill at ease

A friend is receiving statutory sick pay from his employer. My employer would commence SSP arrangements after 40 working days&#39 absence. Having considered this carefully, I would prefer, both as an individual and as one of the management team at my employer, for more generous arrangements to be in place. What options are available to […]


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