UK life insurers have been warned by the FSA to make sure they have adequate capital reserves and put in place all the legal checks they need to meet promises in the future, says this morning's Daily Telegraph .
A "Dear CEO letter" posted on the FSA website yesterday were sent to the chief executives of all UK insurance companies warning them to ensure it meets its obligations as the regulator is worried insurers may not have put aside the correct levels of reserves to pay for guarantees because record-keeping and checks are “inadequate”.
As the Telegraph points out, this letter is just two weeks ahead of a legal tribunal between the FSA and Legal & General over what the FSA sees as systematic mis-selling, and carries major embarrassment with the case as the FOS was alleged to have “lost or destroyed” L&G documents concerning the matter.
THE SCOTSMAN also points out the FSA has banned 19 financial services firms in the past year from carrying out business after regulatory breaches.
More than 100 small financial services firms were also forced to make changes to the way they operated and to address “serious failings” which actually included ensuring they had sufficient professional indemnity cover.
THE INLAND REVENUE has been accused of causing anxiety and confusion by sending letters to thousands of self-employed people suggesting they may have claimed expenses they were not entitled to, adds the Telegraph.
Letters sent to people earning between £15,000 and £150,000 a year are part of an initiative by the Inland Revenue to inform people about "common errors" made on tax returns, but could lead people to believe they are about to be investigated.
Whereas letters appear to have been sent to people who appear to be claiming more in expenses, compared with their overall turnover, than others in the same profession, but most recipients will not have made any error at all.
AND THREE FORMER EMPLOYEES at money manager Amvescap have agreed to pay penalties totalling £1.9m to settle charges relating to the US mutual funds scandal.
The US SEC says Timothy Miller, former chief investment officer for Amvescap's Invesco Funds Group, would pay a fine of $150,000 and $1m in "disgorgement" – the practice where the SEC makes individuals pay back cash gained from taking part in prohibited activities.
Thomas Kolbe, former national sales manager for Invesco, will pay a similar penalty while Michael Legoski, a former assistant vice-president in sales, will also pay a fine of $40,000 and $1m in disgorgement.IFAonline
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till