Your money: The Financial Services Authority had its wrist slapped in last week’s tribunal, sparking celebrations among many companies. Teresa Hunter reports
Most consumers will have watched the titanic tribunal battle between the chief city watchdog, the Financial Services Authority, and Legal & General with as much enthusiasm as a football match between Croatia and Bulgaria. I mean, who cares? But the outcome, an equally unexciting draw, will have major ramifications for the watchdog and the financial industry for years to come.
L&G appealed to the Financial Services and Market Tribunal because it believed the FSA had unfairly accused it of the widespread mis-selling of mortgage-linked endowment policies, and then imposed a whacking fine of more than £1 million. The tribunal found L&G had mis-sold some policies. Hardly a surprise. We all knew L&G, like almost every insurance company, had mis-sold. But it rejected the FSA’s conclusion that there had been widespread and systemic mis-selling, and found the watchdog’s processes that drew these conclusions at fault.
Many within the industry are jubilant to see how the mighty are fallen. They blame the FSA for the collapse in confidence in the savings industry, and believe retribution for past misdeeds has gone too far. The FSA has lost the trust and confidence of many firms – they believe that a regulator which was supposed to promote a strong, vibrant financial sector has set about destroying it.
As someone who has spent a career fighting for consumers, I am fully aware of the giant steps forward in investor protection that we must thank the FSA for. But I sometimes wish it wouldn’t always use a sledgehammer to crack a nut. Thankfully, in future it won’t be able to, and it will now have to re-examine it processes in the light of the tribunal’s findings. Furthermore, the industry as a whole will be relieved that the tribunal has proven itself, in its first major battle, to be fair and impartial. I’d just like to see a more common-sense approach from the FSA in the future , the lack of which to date I put down to the fact that it is entirely made up of men – highly sexist I know, but we can do without the politics of the boys’ school playground when it comes to protecting our money.
While on the subject of endowments, I was taken aback when watching the History Channel to see adverts at every break for these new companies offering to help you sort out your endowment problems. Forgive me for laughing, but who exactly are these companies supposed to be helping other than themselves? These firms are certain to demand an enormous chunk – as much as half – of your compensation money for their services, so if you didn’t have a shortfall before, you’ll be guaranteed one afterwards. Don’t touch these firms with a barge pole. If you were genuinely mis-sold an endowment policy, you will receive compensation, as many of our readers have proven. And am I being too cynical in suggesting that these ambulance chasers are probably the same aggressive sales outfits which sold you the policy in the first place? It seems the actuarial profession has learned nothing from criticisms contained in the Morris Review, published before Christmas, that they failed in their duty to protect the public interest. It is totally shameless that actuaries are now charging £5000 to complete a simple form giving details of collapsed company pension schemes that they advised. This money, as well as all the other lucrative fees, will directly reduce the money left available for victims. Advisers and actuaries are always the first people who get paid out of the little left. If they’d done their job properly in the first place, we wouldn’t be in such a sticky pensions mess. 23 January 2005.
Hotels in Scotland: The Perfect Getaway
If you are planning a trip to Scotland, you are in for a treat. The country offers stunning landscapes, rich history, and vibrant cities. And to make your stay even more memorable, there are plenty of wonderful hotels that cater to every traveler's needs.
Luxury Hotels
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Castle Stays
For a truly unique experience, why not stay in a Scottish castle? There are numerous castles throughout the country that have been transformed into luxurious hotels. You can relive Scotland's rich history while enjoying modern comforts and breath-taking views.
Budget-Friendly Options
If you're traveling on a budget, fear not! Scotland has a variety of affordable accommodations that don't compromise on quality. You can find cozy bed and breakfasts, budget hotels, and hostels that provide comfortable rooms and friendly service.
City Escapes
For those who prefer the buzz of city life, Scotland's major cities offer a range of hotels to suit all tastes. Whether you're visiting Edinburgh, Glasgow, or Aberdeen, you'll find a vast selection of accommodations within easy reach of popular attractions, restaurants, and nightlife.
Conclusion
When planning your next trip to Scotland, make sure to take advantage of the country's incredible hospitality. With a wide range of hotels to choose from, you can find the perfect place to stay and create unforgettable memories.