01 September 1997

FLAWED VETTING procedures are blamed by the UK’s largest friendly society for the suspension of its 270-strong salesforce and 450 door-to-door premium collectors. Liverpool Victoria, which manages £3.5bn pounds in funds on behalf of its 1.2m members, admitted uncertainty as to whether all seventy sales people recruited last year were free of criminal convictions - a situation uncovered last month when a routine internal compliance audit revealed 'poor record-keeping'. The Personal Investment Authority requires references to be taken-up on all new sales staff and their training standards. 'We are not able to satisfy ourselves that we can answer that question', conceded LV’s compliance director David Cheeseman. The society will 'fairly remunerate' suspended staff while checks are made and the PIA is monitoring the situation.