FSA LAUTRO Endowment Fiasco
Published / Last Updated on 31/03/2009
FSA LAUTRO Endowment Fiasco
Millions has been paid in compensation by Financial Advisers for alleged endowment mis-selling.
Yet now, it has been proven that Insurance Companies made mistakes on the quotations that were issued to advisers and consumers. As a result, many advisers may have had to pay compensation when it was not in fact there fault, or indeed not in whole.
LAUTRO was the old insurance company regulator that set the rules for how life insurance projection quotations, including endowments, were to be calculated. It has been agreed that some of these calculations were wrong.
The regulator now, the Financial Services Authority (FSA), has refused to release details of which insurance companies are at fault.
The courts have issued a decision in favour of the Information Commissioner that the FSA should release the names of the insurance companies involved in the LAUTRO fisaco. The FSA has vowed in the High Court 2 days ago that it will still continue to appeal the decision.
What a waste of money. The FSA is spending other people’s money and we believe there is a conflict of interest here. Financial Advisers are demanding the information and Insurance Companies do not wish to be named. Both are regulated by the FSA and both pay the fees of the FSA.
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