Regency was fined £56,000 for failing to meet the demands and needs of its non-conforming clients in the selling of PPI, with a number of customers finding themselves with policies they could not claim on.
The FSA said its behaviour was particularly serious as it was a right-to-buy specialist, with these customers more reliant on a PPI claim in case of difficulty.
Clive Briault, managing director for retail markets at the FSA, said: “Regency Mortgage Corporation Limited exposed its customers to an unacceptable level of risk and our action sends out a message to firms operating in the PPI market that they must operate in a way that treats their customers fairly and meets regulatory requirements.”
The failings came to light during an FSA visit in August 2005. The regulator said the fine had been reduced from a potential £80,000 under the Executive Settlement Scheme because of its support of the investigation.
Regency said it was looking at all its past sales to ensure customers got the right deal.
A Regency statement added: “Regency is confident the new systems, procedures and enhanced monitoring and compliance regime currently in place have been designed to ensure our customers’ interests are paramount, and that their particular circumstances have been fully appraised before any recommendation is made regarding a product.”
Simon Burgess, managing director of British Insurance, said of the FSA’s action: “I’m pleased. There are firms not embracing ‘Treating Customers Fairly’ and who are more concerned with commission and profit lines than looking after clients.
“The FSA is the premier regulator in the UK so it needed to clamp down on the market to protect its own reputation.”
