01 January 1999

THE PERSONAL investment Authority has imposed its largest-ever fine on a UK financial services provider. Liverpool Victoria, the UK’s leading Friendly Society, was hit by a draconian £900,000 fine and an even more eye-watering order to compensate customers to the tune of an estimated £10m. Liver-pool Vic, which sells savings schemes mainly to lower-income households, may have mis-sold its ten-year endowment plans to around 50,000 customers. The PIA found it guilty of failing to keep proper sales records, inadequate training of its salesforce, and failure to stay abreast of new customer protection regulations. The Society has recently undergone a major restructure which saw the involuntary exit of all but fifty of its salesforce and 450 door-to-door collectors.