I understand that Allied Dunbar has upheld a misselling complaint against an IFA, despite overwhelming evidence that the risks inherent in the policy were made clear at the time of sale.
The client alleged that he understood his Maximum Investment Plan (MIP) to be a savings product, and was unaware of the possibility of any shortfall. He claimed that he was not told that the policy was linked to the stock market.
However, the personal illustration issued at the outset, warned that an annual growth rate of 5% would cause the policy to fall short of its required maturity value by £5K.
Despite this, the life office upheld the complaint and refunded the investor’s contributions.
Zurich, which owns Allied Dunbar, noted that that the complaint was upheld on a technicality.
Allied Dunbar was fined £725K by the FSA for not dealing with misselling claims quickly enough.
This decision should, in my view, have repercussions for those of us seeking compensation for endowment mis-selling.