Lincoln Assurance is hiring big five accountancy firm Deloitte & Touche to
investigate the endowment sales of its former appointed representative City
Since September 2000, the life office has reviewed a representative sample
of the 31,000 endowment policies that CFP sold over the last 10 years. Of
the 5,000 reviewed, Lincoln says there is significant evidence of
questionable selling practices but would not say how many policies were
The PIA is overseeing the review and is in discussions with Lincoln on the
outcome. It says it will decide if any disciplinary action is necessary
when it is complete.
Lincoln broke up City Financial last October and sold the salesforce of
500 to direct-sales companies Allied Dunbar and St James's Place and IFAs
Inter-Alliance and Lighthouse.
The problems with CFP first came to light last year when the Consumers'
Association's magazine Which? ran a story in October detailing the problems.
Lincoln head of communications Ian Crowder says: “Clearly, we take any
potential misselling extremely seriously so we are making sure we can
identify any cases where there may be some doubt and will take appropriate
action. We are using an independent auditor to monitor the process and are
keeping the PIA informed at all times.”