The Endowment Diary

The Endowment Diary


The Endowment Mis-selling Debacle - one of the UK's worst financial scandals

Friday, January 30, 2004

I understand from reports that Legal & General will review the sale of with-profits saving products.

By all accounts Standard Life is also thinking along the same lines.

L&G CEO David Prosser told the Treasury Select Committee:

"...We have some doubts about whether there will be sufficient capital being created for the future to maintain these with-profits products.....We would certainly review whether to keep offering with-profits products..."

These products are mainly invested in equities.

Their reputation and usefulness have been diminshed expensive guarantees and falling bonus rates.

Sandy Crombie, CEO of Standard Life told the Committee:

"...The trend is against with-profits.."

The party is over!

Someone will now have to clear up the mess left behind by these underperforming products; which were used to provide the capital to repay mortgages taken out in the eighties.

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