Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

FCA hits insurer with record £30m fine

1 Comment
FCA hits insurer with record £30m fine

The Financial Conduct Authority (FCA) has issued its biggest ever retail fine of £31 million, to insurance company HomeServe.

The FCA found that HomeServe had 'serious, systemic and long running' failings during January 2005 to October 2011. These included mis-selling insurance policies, failing to investigate complaints adequately and the senior management being reluctant to address risks to customers if there was a cost implication involved.

HomeServe, who sells home emergency and repairs insurance cover has paid approximately £12.9 million in redress to affected customers and is expected to pay a total of £16.8 million.

The company originally faced a £44 million fine but received a discount for settling at an early stage.

Reports published last month suggested HomeServe faced a £34.5 million fine but the FCA confirmed the fine totalled £30,647,400.

The FCA said HomeServe had developed a 'profit driven culture' where profit targets were met by 'taking advantage' of customers.

Tracey McDermott (pictured), director of enforcement and financial crime at the FCA said the serious nature of the case warranted the regulator's largest retail conduct fine.

'HomeServe is another example of a firm that has acted without proper regard for its customers over a long period of time. HomeServe promises to provide customers with peace of mind when things go wrong. In fact the firm’s culture, controls and remuneration structures meant that staff were focused on quantity not quality and there were customers that paid the price for that.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play HSBC's Stephen King warns of 'enormous' Brexit deficit danger

HSBC's Stephen King warns of 'enormous' Brexit deficit danger

Brexit will weaken the economy, fail to boost exports and lessen the country's ability to fund its 'enormous' deficit, according to HSBC's senior economic adviser Stephen King.

Play Premier's Smith: electricity and water can be a good mix

Premier's Smith: electricity and water can be a good mix

Exposing your person to electricity and water simultaneously is ill-advised, but what about your portfolio?

Play Citywire 10k: video highlights

Citywire 10k: video highlights

Citywire held its sixth annual charity run last week, which hosted over 200 people and raised £14,000. Here are the video highlights.

Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter