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City Financial closed after Which? hunt

The FSA&#39s fine on Lincoln Financial Services comes two-and-a-half years after it offloaded its subsidiary, City Financial Planning.

In October 2000, the Consumers&#39 Association published an article in Which? magazine accusing CFPL of not making its tied status clear when meeting clients.

This sparked a PIA review, which led to last week&#39s £485,000 fine.

Lincoln conducted an initial review of 5,000 savings plans sold between September 1998 and August 2000. It then expanded this review to all its sales and now expects the review to be completed and compensation paid by the end of this month.

Lincoln began withdrawing from the life and pension market in January 2000 when its US parent announced it was considering selling its book.

CFPL was closed in October 2000. The following August, Lincoln sealed an outsourcing deal for its by then closed book with Capita.

Sixty of CFPL&#39s 490-strong salesforce joined Lighthouse IFA, set up by Bankhall in June 2000. Inter-Alliance snapped up 120 RIs in October 2000. Up to 300 went to Allied Dunbar in December 2000 while others went to JRA or left the industry.

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