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Davies defends FSA&#39s endowment role

FSA chairman Howard Davies has written to the Consumers&#39 Association defending its handling of the endowment crisis and repeating there will be no full-scale misselling review.

The letter, dated June 5 2001, says it would not be right to identify the worst-performing companies, claiming “such information could provide an exaggerated incentive to complain”. It adds that legal reasons prevent the regulator from disclosing the records of individual firms.

The one CA point the FSA accepts concerns potential misuse of funds to pay redress. It says: “We do not believe the current rule, allowing proprietary life offices discretion on how they fund fines, is fair to policyholders.”

It says it is consulting on new rules which would stop companies paying out of the with-profits fund.

Davies says the admin costs of a review on the lines of the pension review would be £5m and this would be disproportionate given the lower percentage entitled to redress. The FSA says there have been 100,000 mortgage endowment complaints – 1 per cent of policies – of which a third have been upheld, with an average redress of £3,000.

CA campaigns and corporate communications director Allan Asher reacted with disappointment to the FSA letter. He says where the FSA has investigated, 20 firms have compensated 218,000 policyholders with sums totalling £315m.


Abbey National Asset Managers appoints head of retail sales

Abbey National Asset Managers has appointed Simon Gordon as head of retail sales in a bid to boost its unit trust presence in the UK IFA market.Gordon, who was head of retail sales at SLC Asset Management, has 15 years experience in the investment industry and joins as Abbey looks to expand its product offering […]

Watson Wyatt attacks actuary proposals

Watson Wyatt has slammed the FSA proposals to change the role of an appointed actuary, saying they will not strengthen regulation or protect consumers. It believes the FSA&#39s plans, announced in its with-profits paper, to remove an actuary&#39s monitoring responsibilities weakens the protection for consumers. It also says passing the duty to report on reserves […]

Outside edge

An outsider could be forgiven for assuming that the movers and shakers of the fund management industry would be those responsible for running the companies. Increasingly, however, it is portfolio managers who have been moving and shaking the most.Staff departures are scarcely new. They are treated as regrettable, nonetheless “local” difficulties. In a market suffering […]

Kingsbridge announces board shake up

IFA Kingsbridge Holdings, which focuses on sports clients, is making a number of changes to its board after a series of acquisitions to improve the balance of non-executive directors. Kevin McMenamin and John Murray are stepping down as directors of the holding company and will go back to running their subsidiary businesses. Eric Cater will […]


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