Legal & General is taking the FSA to an independent tribunal over its ruling that L&G missold endowment policies.
The ruling, which relates to “a small proportion of its mortgage-related insurance policies issued between 1997 and 1999”, is expected to be heard before the financial services and markets tribunal in the second quarter of next year.
L&G says it wanted the case to be aired publicly as it disagrees with the FSA's decision and with the process by which it was reached.
The terms of the decision and the size of the fine imposed by the FSA have not been revealed but L&G says reserves set up at June 30, 2003 are believed to be sufficient to meet any proper claims.
L&G has issued a statement which reads: “Legal & General, after careful consideration and on legal advice, disagrees with both the decision reached by the FSA and the process by which it was reached. Accordingly, Legal & General has taken the first opportunity allowed by the FSA's process to have the matter heard independently.”
Oxford Actuaries and Consultants business development manager Mark Secker says: “There has been a reluctance until now from firms to poke their heads above the parapet. The outcome is bound to have an effect on how firms deal with the FSA's rulings.”