GL&P, formerly Gan Life and Pensions, has been fined £1.4m as a result of its failure to deal fairly and responsibly with customer complaints, one of the biggest fines the PIA has ever issued.
The failings relate to the 10-year period between April 1988 and March 1998, prior to its acquisition by Life Assurance Holding Corporation in March 1998.
LAHC has now reviewed 46,000 policies and compensation totalling £35.4m has been paid to nearly 34,000 GL&P customers, and is reviewing a further 21,000 cases, with up to £10m set aside for redress.
FSA head of regulatory enforcement Peter Bibby says: “This case emphasises the importance of dealing with customers complaints in a fair and responsible fashion. The rules relating to complaints handling are an important element of investor protection and this case shows that we will take seriously failures in complaints handling.”