Legal and General Have Fine Cut
Legal & General Group (L&G) have had their fine for misselling mortgage endowments cut in half in a ruling that criticised the FSA.
L&G will now pay a £575K, the Financial Services and Markets Tribunal said in a decision posted on its Web site.
The original fine was £1.1M.
The ruling said that the insurer was "justified in feeling aggrieved" about the FSA's probe. The watchdog used a report from PricewaterhouseCoopers LLP as the basis of its case when it should have used its own evidence, the ruling said.
L&G was the first life assurance company to appeal against an FSA penalty, this may encourage other companies to challenge the regulator's decisions.
Abbey National was fined £800K by the regulator for mishandling complaints from endowment clients.
Maybe they could employ one of these endowment compensation firms to help them?