17/06/2003
'Good progress' but FSA reveals pensions deficit
In its annual report today, the Financial Services Authority (FSA) has said despite a difficult financial year it has made a "significant contribution" to maintaining market confidence and securing appropriate consumer protection.
However, in its Annual Accounts the FSA had a £102 million shortfall in its pension fund as of March 31, which it blamed on FRS 17 provisions.
It added: "The FSA believes that, when measured on a basis which is more relevant for financial management purposes, the deficit was closer to £50 million. The FSA remains able to operate as a going concern because the pensions deficit will not crystallise for many years and because of its statutory powers to raise fees."
In terms of day-to-day operations, the report pointed to tough market conditions that have exposed cases where firms have not treated their customers either fairly or with integrity – which the FSA expects to be corrected in coming years.
The FSA said: "UK consumers are vulnerable to targeting by unscrupulous firms and individuals who operate without authorisation. During the year we issued a number of consumer warnings and worked with other countries to take action against unauthorised sellers of financial products.
"During the year we opened 580 new enquiries – 38 cases were dealt with by a warning letter and eight were referred to other agencies. Emergency injunctions were obtained to freeze firms' assets and stop them from continuing unauthorised activity – and money has been returned to investors."
In terms of mortgage endowments, the FSA said that, after encouraging consumers to complain of instances of suspected mis-selling, by the end of 2002, product providers had received 185,000 complaints relating to mortgage endowments, had upheld 45% of them and had paid compensation of £170 million to policyholders.
In addition, 23 firms have agreed to compensate 433,000 consumers a total of £672 million to resolve product flaws.
During 2002/03 fines totalling £2.7 million were levied on firms for mortgage endowment mis-selling and related deficiencies in sales systems and compliance and control procedures.
In enforcing regulations, 315 cases against firms were opened as of April 1 and a further 138 cases were opened during the year. Penalties levied in 2002/03 were just over £10 million.
(GMcG)
However, in its Annual Accounts the FSA had a £102 million shortfall in its pension fund as of March 31, which it blamed on FRS 17 provisions.
It added: "The FSA believes that, when measured on a basis which is more relevant for financial management purposes, the deficit was closer to £50 million. The FSA remains able to operate as a going concern because the pensions deficit will not crystallise for many years and because of its statutory powers to raise fees."
In terms of day-to-day operations, the report pointed to tough market conditions that have exposed cases where firms have not treated their customers either fairly or with integrity – which the FSA expects to be corrected in coming years.
The FSA said: "UK consumers are vulnerable to targeting by unscrupulous firms and individuals who operate without authorisation. During the year we issued a number of consumer warnings and worked with other countries to take action against unauthorised sellers of financial products.
"During the year we opened 580 new enquiries – 38 cases were dealt with by a warning letter and eight were referred to other agencies. Emergency injunctions were obtained to freeze firms' assets and stop them from continuing unauthorised activity – and money has been returned to investors."
In terms of mortgage endowments, the FSA said that, after encouraging consumers to complain of instances of suspected mis-selling, by the end of 2002, product providers had received 185,000 complaints relating to mortgage endowments, had upheld 45% of them and had paid compensation of £170 million to policyholders.
In addition, 23 firms have agreed to compensate 433,000 consumers a total of £672 million to resolve product flaws.
During 2002/03 fines totalling £2.7 million were levied on firms for mortgage endowment mis-selling and related deficiencies in sales systems and compliance and control procedures.
In enforcing regulations, 315 cases against firms were opened as of April 1 and a further 138 cases were opened during the year. Penalties levied in 2002/03 were just over £10 million.
(GMcG)
Related UK National News Stories
Click here for the latest headlines.
19 January 2012
Direct Line & Churchill Fined £2M For 'Tampering'
High profile insurers, Direct Line and Churchill, have both been fined a total of £2.17 million after found to have been tampering with their complaints files. The Financial Services Authority (FSA) said it was imposing the fine for failure by the companies to conduct their businesses with "due skill, care and diligence".
Direct Line & Churchill Fined £2M For 'Tampering'
High profile insurers, Direct Line and Churchill, have both been fined a total of £2.17 million after found to have been tampering with their complaints files. The Financial Services Authority (FSA) said it was imposing the fine for failure by the companies to conduct their businesses with "due skill, care and diligence".
18 April 2011
FSA Fines N&P £1.4 Million
The Financial Services Authority (FSA) has fined Norwich and Peterborough Building Society (N&P) £1.4 million for failing to give its customers suitable advice in relation to the sale of Keydata products.
FSA Fines N&P £1.4 Million
The Financial Services Authority (FSA) has fined Norwich and Peterborough Building Society (N&P) £1.4 million for failing to give its customers suitable advice in relation to the sale of Keydata products.
30 September 2010
Lloyds Tops Bad Banking Ranking
Lloyds Banking Group has come top of the league for bank complaints, new research reveals. Findings by the Financial Services Authority (FSA) show almost 290,000 complaints in relation to charges, bad advice, poor service and charges over the past six months. Barclays clocked up 250,667 complaints while Santander had 244,978 complaints registered.
Lloyds Tops Bad Banking Ranking
Lloyds Banking Group has come top of the league for bank complaints, new research reveals. Findings by the Financial Services Authority (FSA) show almost 290,000 complaints in relation to charges, bad advice, poor service and charges over the past six months. Barclays clocked up 250,667 complaints while Santander had 244,978 complaints registered.
31 August 2011
Exclusive: Credit Firms Pay Back £215M
People with credit cards and loans who had complained about expensive payment protection plans have claimed £215m back from disingenuous firms this year. In a 4ni.co.
Exclusive: Credit Firms Pay Back £215M
People with credit cards and loans who had complained about expensive payment protection plans have claimed £215m back from disingenuous firms this year. In a 4ni.co.
05 January 2005
FSA issues warning over endowment complaints
The Financial Standards Authority (FSA) has warned that some mortgage endowment providers are still not handling customer complaints properly.
FSA issues warning over endowment complaints
The Financial Standards Authority (FSA) has warned that some mortgage endowment providers are still not handling customer complaints properly.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.