Mis-selling review nears the end

WATCHDOG the Financial Services Authority has said its review of the mis-sold personal pensions scandal will close by the target date of 30 June 2002.

According to its figures 84% of phase-two cases have already been settled. Total compensation payments are expected to be in the region of £9bn and have been offered to one million investors. This follows the FSA‘s disciplinary action against 345 firms. Consumers should receive their payouts by December this year.

The investigation into personal pension mis-selling began nine year‘s ago and has dealt with 47,000 cases with a further 25,000 to process.

The mis-selling review was aimed at those people wrongly sold personal pensions between 29 April 1988 and 30 June 1994. Mis-selling occurred where people who would have been better off in their company‘s occupational pension scheme were advised to leave or not join, in favour of a personal pension.

The regulator expects most cases to be cleared up by the end of June – although it does admit a small minority will still be outstanding after the deadline.

Philip Robinson, FSA‘s director of the Pensions Review, said this is due to lack of co-operation on the part of the Independent Financial Advisers involved. 'There are a small number of firms who are stopping this sorry episode being finally closed. Between now and June the FSA will concentrate its efforts on those firms and enforcement action will be used where necessary.'

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