Winterthur Life Endowment Fine
Company fined £500,000 after flaws in systems led to mis-selling
25th September 2001
Winterthur Life UK Ltd has been fined £500,000 after the Financial Services Authority (FSA) found that the company's systems led to endowment mortgages being recommended when a repayment mortgage would have been more appropriate - even where the customer had stated that they considered it 'very important' that the the mortgage be paid off at the end of the term.
The company's advisers used a computer program to help them recommend products to customers, but flaws in the program led to mis-selling an endowment policy to up to 10,000 people. £10m has been set aside for possible compensation.
The fine relates to policies sold between March 1998 and December 1999, while Winterthur withdrew from the endowment marketplace in July 2000.
Read More: Financial Services Authority
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