The FSA is helping the Metropolitan Police with an investigation into
commercial end- owment mortgage misselling.
The regulator has confirmed for the first time it is co-operating with the
Met's fraud squad which is investigating allegations of investment product
misselling of endowments on commercial financing deals.
Both say the investigation is into specific allegations and is not part of
a widespread probe.
The fraud squad investigation has been going on for more than two years
but it refuses to confirm how many cases or which organisations are
It says it has not unearthed enough evidence as yet to determine whether
any charges will be made but has not ruled out the possibility anyone
accused of misselling could face jail. Last month, the Serious Fraud Office
reviewed the Metropolitan Police's evidence but concluded there were no
grounds for an investigation into serious or complex fraud.
A Metropolitan Police spokesman says: “The investigation is into a small
number of allegations regarding misselling of endowment contracts which
relate primarily to endowments connected with commercial financing