Compensation for mortgage endowment and precipice bond misselling increased threefold last year, according to the Financial Services Compensation Scheme’s annual report.Compensation paid on the misselling of personal pensions fell by 25 per cent to just under 47m, with the Pensions Review drawing to a close. But investment claims handled by the scheme in 2004/05 increased by 256 per cent on the previous year, largely due to mortgage endowments and precipice bond misselling. The amount of compensation paid for these claims rose by 293 per cent to just under 15m. Last year, 286 firms were declared in default, bringing the total number of firms in default since December 1, 2001 to 652. FSCS chief executive Lore-tta Minghella says that despite increasing permanent staff numbers by 41 per cent in 2004/05, it has often struggled to keep on top of the workload and is now reviewing its structure to handle claims quickly and effectively while keeping costs down for those that fund the scheme. The sharp rise in investment claims, coupled with the withdrawal of subsidies by prov-iders, was also blamed for the dramatic increase in FSCS levies for 2005/06 paid by IFAs. New Life Financial Planning principal John Burnard says: “It is inevitable that we have to bear some of the burden but I think the FSA and other trade bodies have been guilty of encouraging people to make complaints, some of which have been vexatious.”
Skandia Investment Management
Protected Portfolio Investment
The Parliamentary Omb-udsman’s report into whether Government “maladministration” harmed members of occupational pension schemes in wind-up has been delayed until October as the Government wants to present new evidence.
IFS head of faculty financial regulation Mark Roberts on why firms must be completely familiar with the principles guiding the TCF initiative and how they can interpret and adapt them to their own businessesHow can you treat a customer fairly if there is no laid-down definition of what treating customers fairly actually means? This has […]
Principality Building Society has secured a multi-tie panel of eight product providers for its retail customers effective from August 1. The deal sees the Welsh building society linking with Norwich Union, Axa, Friends Provident, Zurich, Standard Life, Scottish Provident International, Scottish Equitable and Skandia, after a tender involving 12 providers. Principality’s pure protection multi-tie panel […]
Those of you who have read any of the political manifestos over the previous weeks may have noticed one glaring omission from all the publications: the subject of welfare reform and the role that income protection could (and probably should) play in this process.
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Almost a third of women in the asset management industry have experienced sexual harassment in the workplace, according to a new survey, as Fidelity and the Worldwide Healthcare Trust dismiss fund managers due to inappropriate behaviour. A global survey by the Financial Times reveals 32 per cent of women working in asset management have experienced […]
Platforms are chasing assets in order to achieve scale but the winners of the future will need more than that The importance of scale is one of the key topics of conversation in the platform industry. Scale brings some clear benefits to platforms, such as allowing them to charge consumers less, providing the means of […]
The pensions industry has welcomed government reforms to boost auto-enrolment while raising concerns about their limited scope and time it will take to implement them. In its much anticipated review into auto-enrolment the government says it will lower the age at which people are eligible for a workplace pension from 22 to 18. The government […]