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Is the FSA creating problems where none exist?

This time last year, I was asked to send a file to the compliance department of my network as the PIA were investigating endowment sales. A case of Mr & Mrs X was duly dispatched and returned with no comments.

A year later I received a telephone call from Mr X advising me that he had had a very interesting conversation with a researcher from the FSA regarding the endowments that I recommended.

The client was surprised at the tone of the questioning, which he felt led him on a route the outcome of which was that he had been missold the endowments.

The researcher even said: “Did you know that the mortgage would continue after your retirement?”

When he asked where the information was obtained from, the researcher said he could not say. Mr X put the researcher right by confirming that the policies in question would finish at the age of 60.

Being self-employed, he could work to 55 or 75 and it would be a matter of choice and financial circumstances when he decided to retire.

In addition, he confirmed that he was more than happy with the policies and the advice given, which encompassed all his circumstances, including the arrangement of a flexible mortgage and life cover to protect the family – of which the researcher made no mention.

It seems, in my humble opinion, that the search formisselling cases is beingdriven by the FSA at anall too alarming pace.

I have had a number of calls from the general public who were sold endowments and who now want to sell or surrender their policies as a result of the scare stories in the press over the last few months and the reprojection letters being sent out by the insurance companies.

If the FSA continue their surreptitious methods of creating problems where none exist, then the problems willbe exacerbated.

I can see what&#39s going to happen in 15 or so years time, when those who kept their endowments are going start to receive their maturities. If they happen to pay out more than the current predictions, the FSA is going to contact all those people who sold their policies and ask: “Why weren&#39t you advised to keep yourpolicy going?”

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