L&G boss calls for overhaul at FSA

INSURANCE group Legal & General chief executive David Prosser today called for widespread changes to the Financial Services Authority's disciplinary process following the group's 'victory' against the regulator's mis-selling fine this week.

Prosser said the verdict two days ago from the Financial Services and Markets Tribunal presented enough of a case for why the current system needed to be overhauled in the future.

The tribunal upheld only part of the FSA's endowment mortgage mis-selling case against L&G and criticised the regulator's enforcement procedures.

L&G has long argued that the current process does not give an accused company the opportunity to defend itself, with the FSA's regulatory committee working too close to its investigation team.

Prosser said: 'I think there's enough said by the tribunal for a new chairman of the regulatory decisions committee to take notice of it.' He added: 'Hopefully we will get a better, more even founded system going forward.'

His comments came as L&G reported bumper new business figures for the final quarter of 2004 - smashing through the £1bn barrier for new life and pensions sales for the year as a whole.

Sales of individual life and pension policies in the UK were up 29% in the fourth quarter to December on the industry standard annual premium equivalent basis. Total new business was up 14% for the year.