The Association of British Insurers (ABI) has welcomed the Financial Services Authority’s consultation paper setting out draft guidelines for mortgage endowment providers calculating redress where mis-selling has occurred.

The guidance complements earlier advice from the FSA Ombudsman, and will be helpful to insurance companies dealing with complaints. It should also help reduce the number of cases being referred to the Ombudsman.

ABI will provide a detailed response to the consultation paper by the 17 January deadline.

Commenting, Mary Francis, ABI’s Director General, said:

“This guidance should help ensure consistency across the industry, where any individual cases of mis-selling have occurred and redress is due.

“As the FSA confirmed in October, people with endowment mortgages have, on average, done at least as well as those with repayment mortgages. However, in individual cases where it can be shown that an endowment was not suitable - and that the policyholder has lost out as a result – the industry is committed to making full and fair redress.”

Notes

Enquiries to-

Suzanne Moore 020 7216 7411 (Mobile: 07712 841183)
Vic Rance 020 7216 7440 (Home: 020 8647 5188)



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