View more on these topics

FSA fires opening salvo in tribunal over L&G appeal

Legal & General&#39s appeal against a £1.1m FSA fine for misselling opened this week with the regulator launching a salvo against the firm.

The FSA accused L&G of a catalogue of failings in selling endowments and ignoring warnings.

The regulator claims that L&G kept insufficient documents on sales, turned a blind eye to warnings and refused to co-operate.

L&G is appealing at a Financial Services and Markets Act tribunal over a fine for misselling of mortgage endowments between 1997 and 1999.

Laywers for L&G and the FSA outlined their cases this week at the beginning of the hearing which is expected to last around six weeks at London County Court.

In its outline case, Hodge Malek, QC, for the FSA, said regulators&#39 visits in 1998 highlighted insufficient client records that did not show the decisions behind the sales process and inadequate reasons-why letters.

He claimed that L&G refused to co-operate with business consultants from Price- waterhouseCoopers who were called in to assess the sales process in 1999.

Malek said: “What PWC were saying would not have come as news to L&G in the context of what had been said in 1998. L&G took comfort in the fact that they were not brought to investigation earlier.”

L&G argues that the FSA&#39s enforcement process was wrong because it used a broad-brush approach when each case should have been dealt with on its own merits.

L&G QC Charles Flint said: “We believe that the FSA is trying to distract attention away from the real issues.”


Abacus urges brokers to act now on M-Day

Specialist branded lender Abacus Permanent is contacting around 10,000 brokers to urge them to start compliant processing now to reduce delays after M-Day. Abacus, formed in 2002 by Mortgage 2000 directors, says brokers should start entering all additional compliance information wherever possible. Head of sales Marc Tur-ner Turner says: “It is imp-ortant that brokers are […]

Genesis finds solution to fee problem for ARs

Mortgage network Genesis says it is the first network to come up with a solution to planned FSA rules which require any mortgage appointed representatives calling themselves independent to offer a fee option. Genesis has previously highlighted a problem where its says most brokers had assumed that any procuration fee rebated to the client would […]

Correspondent&#39s View

The week starts with what will probably be the last really hot weekend of the year so naturally I am booked in for a 10-hour session in the office on Sunday tracing various corporate PRs on their mobiles to knock down/stand up/ref-use to comment on Sunday paper stories. It is not something to tell your […]

Pinnacle peaks with monthly option

PINNACLE INVESTMENTS Pinnacle Guaranteed Monthly Income Bond Type: Guaranteed income bond Minimum-maximum investment: £25,000-£250,000 Term: Choice of one, two, three, four and five years Interest rates: One year term &#45 3.92%-4.21%, two-year term &#45 4.2%-4.3%, three and four year terms &#45 4.3%-4.35%, five-year term &#45 4.5%-4.64% Guarantee: Capital returned in full regardless of performance of […]


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