Manulife fined over salesman

MANUFACTURERS Life, the Canadian-owned life insurer that has promotional tie-up with Manchester United Football Club, has been fined pounds 65,000 for recruiting a salesman who was the subject of serious allegations, writes Paul Durman.

Manulife has compensated nearly 25 customers after being ordered to review business conducted by the salesman in the Midlands. It would not say how much was involved.

Lautro, the life insurance regulator, said Manulife admitted taking on the salesman without making proper checks on his character, aptitude and competence. Even when warned of unspecified 'serious allegations' by his former employer, Manulife failed to adequately investigate his background.

Lautro found Manulife's compliance department was insufficiently involved in the salesman's appointment and subsequent monitoring.