Royal Liver Group

Royal Liver Assurance acknowledges and accepts the official announcement of the outcome of FSA enforcement proceedings.

A fine of £550,000 has been fixed by the FSA in the UK as a result of breaches involved in the sale of regular premium With Profit Endowment contracts in the UK during the period 1999 – 2003.

The breaches centre around the failure of the Society to ensure that sales of endowment contracts, which contain both an investment and a life cover element, were suitable.

In the case of older lives, the life cover element becomes a significant part of the contract and as such the need to demonstrate a clear need for protection increases.

The relevant contracts were withdrawn in the UK in 2004 and all policyholders affected have been contacted and offered a full refund of premiums plus interest at an appropriate rate.

Royal Liver has worked closely with the FSA on this issue to ensure that the appropriate lessons have been learned and controls have been strengthened as a result.

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For more information please contact Richard Edwards at Royal Liver Group on +44 (0)151 600 4268.