Agent mis-sold our plans

By STEPHEN WOMACK
Updated:

 

INSURER Lincoln Financial Group has launched a mis-selling probe into 27,000 investment plans.

The company last week sent out letters to customers who bought a ten-year endowment called a Maximum Savings Plan. They are being invited to have their policies reviewed because other products, with lower charges, might have been better.

The investors were sold the plans by City Financial Partners, a tied agent of Lincoln that was based in the Centre Point tower in London's West End. The sales took place between 1993 and 2000, when CFP was shut down.

The insurer's letter says: 'Lincoln is now reviewing sales of this product because we believe some sales may not have properly taken into account investors' needs.' The endowments had heavy penalties for anyone who cashed in during the early years. Growth in the plans was not tax-free, and charges were high. Alternative investments such as Peps or Isas would have allowed savers to stop, start again or vary contributions, and returns are tax-free.

Lincoln has examined a sample of 5,000 policies and raised doubts over more than a tenth of the sales. Spokesman Ian Crowder says: 'We have worked through the wording of this letter with the Financial Services Authority and it is aware of what we are doing. We will investigate claims as quickly as possible and, where appropriate, will offer a series of options for redress.'

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