Insurers Bite Back
Following on from the drubbing that the Financial Services authority (FSA) received from the Financial Services and Markets Tribunal, in its case against L&G, insurers have been quick off the mark to bite back.
Insurers have demanded that the FSA "improve" its investigation and enforcement procedures.
The Association of British Insurers (ABI) have accused FSA staff of building cases against insurers, to send a tough message to the market.
The FSA is reviewing its investigation procedures, after Legal & General had a fine for mis-selling cut on appeal.
The FSA said it would "consider" the ABI's views and respond in July.
The ABI said that the FSA's Regulatory Decisions Committee (RDC), the body which oversees enforcement, needed to be more open with firms under investigation.
The ABI said:
"There is a perception that FSA enforcement staff are often intent on delivering a particular message to the market and seek to build a case... to support that message..".
Needless to say, whatever the outcome of this spat, it will not be benefit the holders of worthless endowment policies.