Advice Re Endowment Misselling

Suz18

Hello

Can anybody give me some advice on whether I was mis sold an endowment policy?

I went to see a financial advisor back in August 1999 the financial advisor, I have just found out, was directly connected to Standard Life.

At the time I was 27 single and still living with my parents. I wanted advice re saving £50 per month over a long period of time as a nest egg for when I was older in my 50's. This guy suggested an endowment and I said but I don't have a mortgage and he said it didn't matter but if I took out a mortgage in the future I could use the endowment for that or just keep it as an investment. I ended up signing up for a Standard Life Homeplan paying £52 over 25 years.

I haven't really given this much thought over the years but on speaking to a few people just lately I have become aware that I should probably have been sold a PEP and not an endowment policy and have also been told I am probably paying a life insurance element within the endowment which I didn't ask ofr and didn't need at the time either.

Should I complain? I am not sure whether I have been mis sold or not.

dunstonh

At the time I was 27 single and still living with my parents. I wanted advice re saving £50 per month over a long period of time as a nest egg for when I was older in my 50's. This guy suggested an endowment and I said but I don't have a mortgage and he said it didn't matter but if I took out a mortgage in the future I could use the endowment for that or just keep it as an investment. I ended up signing up for a Standard Life Homeplan paying £52 over 25 years.

That is absolutely disgraceful advice.

I have become aware that I should probably have been sold a PEP

Correct. Although some tied agents didnt have PEPs available or if they did they were at £100pm minimum. In those cases they usually had a savings endowment (dont confuse with a mortgage endowment).

Tied agents dont have to give best advice. They only have to give what is best on their own product range.

Should I complain?

Yes. This is nailed on dead cert complaint. It breaks too many rules.

1 - You wanted long term regular savings but was sold a mortgage endowment.
2 - You didnt have a mortgage and pre-sale mortgage endowments are nearly always upheld with complaints (exception are armed forces or tied accommodation that would likely expire requiring you to buy a house later, where it could be justified)
3 - You should have been sold a PEP as first choice, or a unit trust as second choice or even a savings endowment as last choice if the tied agent couldnt do the first two. You should not have been sold a mortgage endowment as it is not as tax efficient and you were paying more in life assurance than you needed.

Suz18

thanks for you advice - how can I tell whether the endowment I was sold was a savings endowment or a mortgage endowment. I remember clearly the guy saying about using it to pay off a mortgage if and when I bought a house but not much else and I know the plan I have does not have a with profits element.

dunstonh

how can I tell whether the endowment I was sold was a savings endowment or a mortgage endowment.

The mortgage one was called homeplan and had a sum assured that was large (typically to match the mortgage). The savings version had a much smaller sum assured and wasnt called homeplan.

Suz18

Thank you for your replies I will complete the complaints form and see what happens. It was definately called Homeplan which is stated on the original confirmation letter that I still have but I am sure it was only for £30,000 minimum. I have spoken to Standard Life today and they have told me that it is a Unitised Endowment Managed Fund including life cover and can be used against a mortgage if I want it to.