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R&SA hit with £950,000 endowment fine

Royal & SunAlliance Life and Pensions has been hit with a £950,000 fine by the FSA for mortgage endowment related failings.

The action marks the second time the life office has been fined in less than a year, following on from the record £1.35m fine imposed on it for its second offence under the pensions review.

This time it has been penalised for deficiencies in the sales of the 35,000 endowment policies it sold between 1997 and 1999.

R&SA has set aside £11m for redress for misselling during this period while a further 2,000 short-term contracts have also been subsequently reviewed with £5.6m offered to consumers.

FSA managing director Carol Sergeant says: “This further action on mortgage endowment misselling should leave misselling firms in no doubt of our commitment to tackle those firms who make unsuitable recommendations to their customers, and to secure compensation for those who have lost out as a result.”

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