The FCA has issued its largest ever retail fine of £30.6m to insurance broker HomeServe for misselling policies and not investigating complaints.
In its final notice, the regulator found serious, systemic and long running failings, extending across many key aspects of its business.
HomeServe has already paid out £12.9m in redress with an expected £16.8m more to come.
Between January 2005 and October 2011 it mis-sold insurance policies and failed to investigate complaints adequately. The FCA says the firm’s board was insufficiently engaged with compliance matters while senior management were reluctant to address risks to customers if there was a cost implication involved.
HomeServe sells home emergency and repairs insurance cover. The FCA says the firm developed a “profit driven culture” and it was “taking advantage” of customers.
FCA director of enforcement Tracey McDermott says: “Firms must put the interests of customers at the heart of their business if we are to restore trust and confidence in financial services.
“True change in the culture within the financial services industry will only be achieved when firms and their management accept and deliver on their responsibility to ensure that customers are treated fairly.”