Score Draw
The Financial Services and Markets Tribunal (FSMT) issued its judgement in the Legal & General (L&G) vs Financial Services Authority (FSA) case.
The FSMT yesterday cleared L&G of wide-spread mis-selling of endowments, it noted that only 8 out of the 152 sales reviewed could be proven to be mis-sold.
The Tribunal also noted that the £1.1m fine imposed by the FSA should be reduced, and said a further hearing will be held on this issue.
It noted that ruled that the FSA had been "in error in its approach to the mis-selling case", adding that its conclusions were "not justified by the material before it".
The case has ended up costing L&G more in legal fees, than it will save through a lowering of its fine.
Needless to say both L&G and the FSA are claiming victory.
Whether this ruling helps the 8 million hapless holders of these underperforming, and useless, products remains to be seen.
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