View more on these topics

FSA believed agreement existed

The FSA stood by its view that a section 44 agreement was always in place for Colonial Mutual UK Holdings Group until December 2005 when the endowment claimants requested this to be backed up in court.

The regulator then conceded there had been no written agreement.

Despite repeated refusals from Winterthur to produce a copy of a section 44 and the fact that the PIA was aware in 1998 that CMHG’s appointed representative status had been backdated, letters showed that the FSA’s official line was that a section 44 agreement always existed.

In a letter sent to former Labour MP Ross Cranston, QC, in January 2001, FSA director of investment business Michael Folger stated CMHG had been an appointed rep of Colonial Mutual Life Assurance Society since February 1989.

In September 1998, the claimants received a fax from PIA membership administrator Peter Cooper with details of the AR status of CMGH.

It contained a note handwritten across the document, stating the appointment date was changed retrospectively on the PIA register by Colonial on September 11, 1998. This was confirmed in a further letter from Cooper on 25 September.

In December 2005, the claimants’ solicitors got a letter from FSA company secretary Iain Brown, which the claimants say was the result of pressure on the FSA to back up its claims in court. Brown’s letter states that although “the company (CMHG) has acted as an AR for Colonial Mutual since 27 February 1989”, “the company (CMHG) and Colonial Mutual entered into a written agreement with respect of the appointment of the company (CMHG) as an AR for Colonial Mutual on 1 April, 1993”.

Brown also said that the FSA was unable to find any documents in its files before this date that proved that CMHG was section 44 compliant.

Further letters from the FSA showed this 1993 appointment was by Imro but that dual Imro and Lautro regulation was required for an AR to comply with regulation.

Brown’s letter said, on the 1993 agreement, that while “the lack of an earlier agreement might have justified further regulatory action at the time, there is no case for that over 12 years later.

“It follows that, to the FSA, whether or not a written agreement existed before April 1993 is not of current regulatory interest.”


Capita signs outsourcing deal with Pru

Capita has signed an outsourcing agreement with Prudential to deliver a range of life and pension sales and administration services.Around 450 staff will move from Pru to Capita from the customer services, PruDirect and support services operations in Belfast. The moves will take place in early Autumn under Transfer of Undertakings (Protection of Employment) Regulations. […]


The MM Profile: Dr Marius Barnard

At the age of 79, the architect of critical-illness insurance, Dr Marius Barnard, is inexhaustible in his crusade to close the protection gap.

Sesame chief Gale’s tied tirade

Sesame chief executive Patrick Gale claims multi-tied rivals, including Barclays and Openwork, run a quasi-tied model while Sesame’s Select offering allows advisers independence of thought. Gale says Select advisers can go off panel and access the whole of the market while other companies restrict their advisers’ choice of provider and have effectively just tagged extra […]

Simple truth is that client is worse off

I am involved in dealing with a client who has two individual pension arrangements, one with Legal & General and one with Friends Provident, in respect of the same employment. One fund value is about 240,000 and the other is 150,000. The bigger fund value has the benefit of very attractive guaranteed annuity rates. If […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm