Advertising blitz launches phase two of pension mis-selling review

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CITY REGULATORS yesterday launched a pounds 10m advertising campaign aimed at 3 million people who may be owed at least pounds 4,000 each in compensation for pension mis-selling.

The Financial Services Authority is urging pension savers to reply to letters, sent out between now and the end of March, inviting them to seek compensation under the second phase of the pension mis-selling review.

The TV, radio and press campaign marks the start of phase two of the review, which is aimed at millions of younger customers who were sold a personal pension when they could have joined a superior company scheme.

Phase one of the review, which began in October 1994, covered 680,000 older buyers who may have retired or died since being mis-sold a pension. More than 380,000 customers have already been offered compensation totalling over pounds 2bn.

Customers were yesterday warned that they must reply to the letters, to be sent by firms which may be guilty of mis-selling, in envelopes marked "R.U. Owed?".

Customers who fail to reply to the letters will be excluded from the review, missing out on the chance of compensation.

Ron Devlin, director of the review at the FSA, said: "Many people are unaware they may have been affected by personal pensions mis-selling between 1988 and 1994. People should look out for the advertisements and, if they receive the envelope, read the contents carefully and take the necessary action."

The FSA played down concerns raised by independent financial advisers, who say they fear bankruptcy if they are forced to pay their share of the pounds 11bn compensation bill.