The Endowment Diary

The Endowment Diary

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

Monday, October 11, 2004

Expert Conned

It seems that even those at the very top of the finance industry, were conned into believing that endowment policies would work.

It is reported that Simon Chapman, a senior partner with PricewaterhouseCoopers (PWC) and an expert on financial services compliance, bought a Legal & General (L&G) endowment policy.

He was assured that the L&G policy was "a sure fire way" to pay off his mortgage, and produce a cash surplus.

Familiar words?

This revelation came out during the court battle between the Financial Services Authority (FSA) and L&G, last week.

Happily for Mr Chapman, after complaining about the policy being mis-sold, he received compensation of premiums plus interest.

Let us hope that we all receive such treatment from our life assurance companies!

Ironically he was then hired, jointly by the FSA and L&G, to investigate a sample of L&G endowment customers; as part of an FSA investigation into alleged mis-selling.

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