Firms fined £45,500 for poor traded endowment sales

Both Knowlden Titlow Financial Services and Derrick Hales Financial Planning were found to have made major errors in the sale of these products. The FSA has recently conducted a programme of work examining the advice and sales processes of firms in regard to geared traded endowment policies. These are with-profits policies sold on the secondary market, where the purchaser agrees to pay the remaining premiums and can claim the policy value at maturity or when the original owner dies. Jonathan Phelan, head of retail enforcement at the FSA, says: “Geared traded endowment policies are com...