Scottish Amicable
Company: Scottish Amicable
Fine Amount: £750,000
Date: 6th March 2003
Scottish Amicable were fined after the FSA found that mortgage endowment policies were mis-sold by the company’s appointed representatives between January and December 2000.
The mis-selling centred around advisors failing to properly identify whether a customer knew about the risk of the mortgage amount not being covered by the policy at the end of the term, and whether the customer was happy to take this risk.
The findings led to 33,781 policies from the period January 1999 to February 2001 being reviewed, with £11m set aside to cover recompense where appropriate.
The FSA said that the size of the fine reflected the seriousness of the offences, especially the failure to take sufficient note of guidance issued in December 1999 which required endowment firms to strengthen their procedures where necessary.