Hargreaves blames FSA for failing to heed warnings on Lifemark products

Hargreaves Lansdown founder and executive director Peter Hargreaves believes the FSA is to blame for the latest huge Financial Services Compensation Scheme levy to pay for losses on Lifemark products.

He says: “Hargreaves Lansdown was violently against these products, we spoke out in the nationals and trade newspapers about them, to the FSA, we said they were all rubbish. So here we are screaming from the rooftops saying this is a crap product and we never recommended them to any of our clients and we have one of the biggest bills of all.

“The regulator must be responsible, a number of people complained about Keydata and nothing was done, they are allowed to trade and create more products and what happens, the FSA people get more bonuses.”

Chelsea Financial Services managing director Darius McDermott says: “We were always against products based on life settlements as we could not quantify the downside. Keydata aggressively tried to sell these products to us and were eventually asked to leave our building. We think the bill is completely unjust and unfair.”