The Financial Services Commission (FSA) states that you may have grounds for a complaint if:

1. The Endowment Policy was not suitable for you

2. The sales process did not follow the rules of the FSA and other regulators

3. The policy does not mature until after your intended retirement date

4. The adviser recommended you cash, or buy an additional endowment

Victory Claims Ltd will assist you in every aspect of your complaint, from initial assessment and compilation of documentation, continually chasing the complaint through to a successful and satisfactory compensation award. Using our extensive knowledge of the financial services industry, we assess each policy to ensure that it was sold according to the regulations and that it was an appropriate method for you to repay your mortgage. Where we find that an Endowment Policy was inappropriately recommended or broke the rules of the regulator, and you have suffered a financial loss as a result of the advice you received, we aggressively pursue your case for compensation

In order to make a claim, your Endowment Policy must be in shortfall. You should have received a Re-Projection Letter recently that illustrates the likely value of your policy at maturity. If this letter states that your Endowment Policy is not on target to repay your Mortgage then we will determine whether the policy was suitable and complied in full with the rules of the Regulator.

Our experienced Claims Assessors apply the following tests to investigate the grounds for your complaint:

1.  The Endowment Policy was not suitable for you

The responsibility of the advisor who sold you the endowment was to ensure that you were aware of your options and advise you which repayment method and specific product best suited your own situation.  It is a fundamental rule of financial services that the advisor establishes a clear understanding of your personal circumstances and attitude to risk before recommending any product.  As an integral part of the discussions you had with the advisor before you took out the endowment, the advisor should have:

a)      Completed a factfind into your own personal financial situation

b)      Assessed your attitude to risk by assessing the types of investments you had bought in the past.

c)       Discussed your repayment options, outlining disadvantages as well as the advantages of each using an endowment to repay your mortgage.

d)      Explained that the endowment fund invested heavily in the stock market and other assets that involved risk.

e)      Outlined the specific product features and inherent risks associated with an endowment mortgage.  These include:

·       Endowments are long-term investment vehicles, that provide a loss if cashed in early, due to the high fees charged in the first few years.

·       The amount paid out at maturity is directly linked to the performance of the stock market and other risk based assets

·       The Endowment is not guaranteed to repay the Mortgage at the end of the term

·       A guaranteed death benefit only repays the Mortgage if you die, and that it does not indicate that the Endowment is guaranteed to perform well.

2.  The sales process did not follow the rules of the FSA and other regulators

In addition to the assessment of your financial situation and attitude to risk, your advisor was required to comply with certain regulations.  Financial Services, including advice and sales on endowment policies did not become regulated until 29th April 1988.  The specific rules and regulations have changed several times since 1988 although the certain key information should have been provided:

The Adviser should have detailed the fees and commissions and outlined how they would affect your returns

The Endowment Company should have sent you detailed product information called the Product Particulars or Key Features.

3.  The policy does not mature until after your intended retirement date

As part of the Factfind the advisor needs to assess not only your current, but also your future financial situations and advise you of the most suitable products to address your changing circumstances.  One simple consideration is your expected retirement age when most incomes are halved, reducing the financial capacity to maintain either the interest or the endowment.  It is therefore critical that the advisor check that you could afford the payments if the mortgage term goes into your retirement

4.  The adviser recommended you cash, or buy an additional Endowment Policy

The practice of advising a client to buy and sell investments in order to profit from the commissions paid to the advisor is known as churning.  It is a practice that is banned in most regulated markets and is particularly cynical when you consider that endowments do not perform well in the short-term. If you were advised to cash in an existing endowment policy and sold a new one that replaced it then it is likely that the advisor was guilty of churning.

Please complete our online claim form if you believe you have a claim or are unsure how to seek compensation.  Our Claims Assessors are ready to assist you start your claim after a 10-15 minute assessment of your policy and financial circumstances.

Find out if you are entitled to claim today

If you have an endowment policy and have not made a claim you must consider your options.  If you are unsure if you have a valid claim or require assistance in starting the claims process, all we require is the following details:

1.  Your policy provider (Standard Life, Prudential, Legal & General etc)

2.  Your policy number

We will then ask you some questions about your personal financial circumstances at the time you were advised and assess the suitability of the advice you received.  If we believe the policy was not suitable for you, we shall send you the following documents to sign:

3.   Client Agreement

4.   Letter of Authority

Once we receive your signed documents we will immediately start your claim.  The time to conclude each case depends entirely upon individual circumstances as does the amount of compensation offered.  Upon receipt of an offer of compensation we provide an assessment of whether the amount offered is compliant with FSA rules for calculation.

New Claims:   

Telephone:     0800 011 2510
FAX: 0871 218 1207
Email:             info@victoryclaims.co.uk