Endowment mortgages

The Financial Services Authority (FSA) has imposed a record fine of £1mn, for the mis-selling of endowment mortgages, on Abbey Life (a part of Lloyds TSB) which closed for new business in February 2002. Lloyds TSB has set aside £165mn to compensate up to 46,000 policyholders for mis-selling between 1995 and 1999. A further 4,000 purchasers of savings endowments may also be entitled to compensation.