Norwich Union Endowment Policy Selling Question

tillson

Before we were married, my wife took out and endowment policy with Norwich Union in 1990. I had taken out two policies in the mid 1980s before we met. When we married, we sold both houses and bought another one using the three policies to potentially repay the mortgage upon maturity.

Obviously, as is the case, all three have underperformed. I have successfully claimed for miss selling on the two policies that I took out and have been compensated.

My wife tried to claim for miss selling about 5 years ago, but was sent a copy of a form that she had signed stating that The xxxx Building Society had not provided any advice on the type of mortgage she chose or on the sale of any endowment products. I thought that was an end to it, and it probably is.

However, I recently thought to myself, if the xxx Building Society is offering a product for sale, ie the endowment policy, should they not have warned her of the risks involved? By their own admission, in the afore mentioned form that they sent out, they have not given her any advice either positive (selling) or, more importantly, negative (warning of a possible shortfall with their product).

Does anyone in a similar situation to this or experience of this type situation have any views or advice? As mentioned earlier, it may well be that the matter is closed and nothing further can be done, but I would appreciate the forum’s views / opinions before I decide what to do next.

dunstonh

Obviously, as is the case, all three have underperformed.

Why obviously? Most NU endowments are back on track for a surplus or hitting target. (especially with their price promise of upto £5000 included)

However, I recently thought to myself, if the xxx Building Society is offering a product for sale, ie the endowment policy, should they not have warned her of the risks involved?

Sale of product by execution only means no advice is given. They would have to give an illustration and key features document. The minute they start giving advice, it comes under advice rules. Only where it is clearly wrong what the person is doing should you intervene.

Does anyone in a similar situation to this or experience of this type situation have any views or advice?

When you complain about these things, you are complaining about the advice. If you didnt seek advice, then you cannot complain about the advice as there was none.

Copy and paste of execution only definition:
[SIZE=-1]where the company arranging or selling the financial product does not give any advice regarding the benefits or risks concerning the product.

[/SIZE][SIZE=-1]There are requirements on the company still but advice and pointing out risks is not one of them.
[/SIZE]

tillson

Thanks for the input dunstonh. You have pointed out a few things which I was not aware of. Regards Tom