Insurance giant fined £950,000 for mis-selling endowments

Insurance giant Royal & Sun Alliance was today fined nearly £1 million by the City watchdog for mis­selling endowment mortgages.

The Financial Services Authority has fined Sun Alliance Life and Pensions and Royal & Sun Alliance Linked Insurance £950,000 for mis-selling the policies and for deficiencies in its sales system between January 1997 and July 1999.

It is the third largest fine the watchdog has levied for endowment mis-selling after Royal Scottish Assurance was fined £2 million and Abbey Life was fined £1 million.