Hope lost over naming the Lautro 19

Former IFA Defence Union chief Evan Owen says hope of naming and shaming the so-called Lautro 19 is now “dead and buried”.

This week’s Money Marketing reveals that Owen has received clarification from the Information Commissioner’s office that the High Court has ruled that the information falls under absolute exemption rules under the Freedom of Information Act and does not have to be disclosed.

The case stems from a FoI request by the IFADU in January 2005.

The Information Commission ruled in August 2007 that the FSA had to name the mortgage endowment providers which misused Lautro projections in setting premiums, meaning clients were given unrealistically high maturity figures.

Advisers claim the projections led to misselling payouts for shortfalls that were exaggerated or non-existent.

The FSA appealed against the decision but in October 2008 the Information Tribunal rejected the regulator’s argument that the IC had no right to order the publication of the names of businesses involved.

The FSA launched a High Court appeal which was heard in April.

Owen says the only way this can now be revisited is if there is a public outcry.

He says: “This is not about protecting the life offices but protecting the FSA. Why should IFAs have to suffer the misselling costs of policies where the Lautro projections were mispriced by the provider?”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Cover up stench
    The stench of a cover up pervades.

  2. Treating Advisers Fairly
    IFAs are expected to pick up all the shortfalls in all life and pension products either directly or through the FSCS, they also cannot allow for windfalls thanks to Norwich Union’s Board. When are we going to see fair play for small advisers past and present? http://www.treatingadvisersfairly.com

  3. Julian Stevens 8th July 2009 at 10:12 am

    Hope lost over naming the Lautro 19
    So much for the “open and transparent regulator” that the FSA proclaims itself to be on the home page of its website. All the more galling that it uses our money to be exactly the opposite. And since when did the FSA ever take a blind bit of notice of public outcry? And so the FSA’s campaign of pernicious persecution against the IFA sector will continue unabated. But one day, just maybe, somebody will do something about it. We live in hope, if not expectation.

  4. We know who you are
    I forgot to say we only wanted the FSA to confirm what we already knew. Even the Institute of Actuaries agreed that there must have been enough actuaries at LAUTRO to work out that the regime handed down by the FSA (nee SIB) couldn’t work. Who were in charge and second in command of SIB at the time? Andrew Large (financial stability) and Mark Weinberg (Allied Crowbar). Sums it all up really.

  5. Which?
    Taking up the baton?

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