Thousands of endowment mortgage holders may eventually have to fall under the Financial Services Compensation Scheme, as the Scotsman reports a mortgage brokering firm has gone into liquidation which may have mis-sold these products.
KPMG is said to be contacting clients of the Mortgage Advisory Centre in Edinburgh's Walker street as the firm, has gone into liquidation after setting aside hundreds of thousands of pounds in compensation for customers sold endowment policies, but it may not be enough to pay compensation.
The FSA is said to be in discussions about how over 700 compensation claims – 59 of which have been settled but no money found to pay them – can be paid, particularly as the number of cases are expected to rise over the coming weeks.
Blair Nimmo, of KPMG, is quoted as saying: "We are currently liaising with the Financial Services Compensation Scheme to determine what protection may be available for existing and future claimants. Our job is to ensure this company is wound up efficiently and effectively, whilst trying to realise maximum value for creditors."
MEMBERS OF THE Courts pension fund will this week ask the Pensions Ombudsman to investigate the transfer of millions of pounds out of the scheme just months before the retailer collapsed into administration, reports the Times.
Ged Dempsey, founder of the Courts Action Group, is referring the case surrounding the furniture retailer’s pension fund to the government body after an independent investigation cleared the former trustees of the fund of any wrongdoing.
Stephen Ross, the independent trustee who undertook a comprehensive review of the scheme, failed to find any evidence of maladministration.
But Dempsey believes Howard Cohen, a former director of Courts and trustee of the pension scheme, misused his powers by transferring £3.9m out of the group fund and into a personal pension fund, eight months ahead of the company’s collapse into administration last November.
THE FUTURE OF Prudential’s internet bank, Egg, is still under review, according to its new chief executive, Mark Tucker, and his thoughts about the company’s 79% shareholding “were evolving", reports the Daily Telegraph.
The insurance company's failure to sell Egg 18 months ago was one of the main reasons behind the sacking of previous chief executive Jonathan Bloomer.
However, Tucker has now promised to review the whole group and outline his thoughts in October, insisting he would not be forced into a sale as he has only been in the job two months.
AND IT WILL TAKE two years to turn Abbey National around, its Spanish owners said yesterday, when they reported their first half financial figures.
The Guardian says pre-tax profits for Banco Santander-owned Abbey remain at £294m, however, this is largely as a result of cost-cutting.
Some of the findings revealed yesterday indicate staff were confused by their job titles, so they have been changed.
Graham Hardie, the new sales and marketing director, conducted a mystery shopping exercise before arriving to find the “personal home financial advisers” were confused by their roles, so have now been relabelled mortgage advisers again, while other staff felt the branding adopted by the previous management made the staff apparently feel like they were walking into “playgroups”.
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