The Endowment Diary

The Endowment Diary


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

Thursday, July 08, 2004

Ever Decreasing Circles

The increased number of complaints about failing endowment policies is causing headaches for the FSA.

Not only has its workload increased massively, but the funds sets aside to compensate people claiming under the financial services compensation scheme seem to be running out.

The scheme is used to compensate people who have lost money from firms that have gone bust.

The FSA is asking for a further £15M, on top of the £33M it acquired a few months ago.

The catch is, and there always is a catch, that the money will be derived from higher subscriptions charged to financial services firms; they, no doubt, will pass these charges on to the long suffering holders of endowment policies.

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