The Financial Services Authority has ordered life offices to offer consumers a helping hand with endowment mortgages despite shunning a full-scale enquiry.
IFAs may still face disciplinary action in specific cases, including endowment sales to those soon retiring, but the FSA has no plans to launch a major misselling enquiry.
The regulator has agreed with the Association of British Insurers proposal for life assurance companies to mail all endowment policyholders with the FSA factsheet by the end of next month. It also ordered the setting up of consumer helplines.
The move has been welcomed by the industry. A Legal & General spokesperson says: “We are highly supportive of the FSA's announcement.”