The Financial Services and Market Tribunal looks set to hear a case between the Financial Services Authority and Legal & General. The FSA are pressing to impose a fine of around £1.1m on Legal & General for mis-sold endowments.
Legal & General are contesting this and it appears that over 15 individual, alledgedly mis-sold, policyholders will take the stand.
Our view
This is the first time the FSA has been challenged when attempting to impose a fine on a financial services company. Given the facts that:
1) The FSA and its predecessor the Personal Investment Authority (PIA) made a complete "pigs ear" of what does and does not constitute mis-selling resulting in a virtual collapse of professional negligence insurance markets where financial advisers struggle every year to obtain insurance and
2) The fact that many thousands of people have been mis-sold and indeed, many thousands have received compensation (by jumping on the bandwagon) who have not been mis-sold this case is going to be interesting.
The bottom line is everybody is to blame: The Regulator for weak rule enforcement and regulation. The Industry for greed and poor internal policing. The public for also being greedy or not taking enough care themselves.
Even today - we still have people who approach and are not happy to pay even a few pounds in fees for real, good quality, unbiased, financial advice.
Our Ask An Adviser service costs just £9.99 for a totally independent view of your finances.