The Endowment Diary

The Endowment Diary

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

Friday, May 27, 2005

Legal and General Have Fine Cut

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?

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