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Wednesday, August 26, 1998 Published at 15:02 GMT 16:02 UK


Business: Your Money

Pensions mis-selling toll rises

The fallout from pensions mis-selling continues

Another 22 financial advisory firms have been added to a lengthening list of those fined or reprimanded for failing meet case-review deadlines over pension mis-selling.

Twenty smaller independent financial advisers (IFAs) have been fined a total of £73,000 ($119,000) by the Personal Investment Authority (PIA) while two others have received reprimands.

The PIA says the action was taken for failure to meet the December 1997 deadline for review of claims of inappropriate advice by IFAs to clients over switching out of company pension schemes into less-attractive personal plans.

The first stage of Phase One of the review, ordered by the government, was to see 90% of most urgent review cases - concerning people in or close to retirement - completed by the end of last year.

The government says Phase One of the review - 655,000 urgent cases relating to mis-sold pensions between 1988 and 1994 - is to be completed by the end of 1998.

£1.35bn compensation

The latest fines are in addition to the £4.6m imposed on 151 other firms, including large insurers and banks, for similar failures.

The PIA said that by May, 540,000 individual mis-selling cases had been dealt with compensation worth £1.35bn now being accepted by half that number.

A further 40,000 have yet to accept compensation offers.





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