Advice on endowment mis-selling

Hi

I am seeking some further advice on how I should progress with my compensation claim in respect of my endowment mortgages that I was mis-sold.

I have been following the advice given on the Which endowment action web site and this has been extremely useful. I have followed the complaint procedure and used the letter generator for assistance. However, I need some further advice on how I can proceed with getting compensation. Both the FSCS and my endowment provider ? Royal & Sun Alliance seem unwilling to help.

A finacial adviser sold me three Royal & Sun Alliance Life endowment policies, which commenced on the following dates: -

12.4.1988 - target amount £20000 11.5.1989 - target amount £9,000 29.11.1991- target amount £5,000

In July and December 2000 I received individual letters from Royal & Sun Alliance regarding each policy stating that their was a high risk that the policies would not pay out enough.

I received revised figures in February, May and July 2003 to confirm there was a high risk that all three policies would not pay out enough.

The firm that the the adviser worked for is is no longer trading and are listed as being ?declared in default' according to the FSCS (Financial Service Compensation Scheme) web site. However, at the time of writing my complaint letters (December 2002), the financial adviser who sold me the three Endowment Policies was now working for a different firm. I have checked his current status using the FSA web site and he finished working with an end date 4th October 2004. He is not listed as joining any other financial companies and I presume he has now retired.

As the company that originally sold my endowments are no longer trading, I have taken my complaint to the FSCS and to Royal & Sun Alliance. In the letters to both organisations I provided the following.

The reasons I am complaining are as follows: ? The endowment was not suitable for me ? Other options for repaying the mortgage were not discussed fully with me ? The adviser did not explain there was a risk the endowment would not meet the target amount ? The adviser did not properly establish my attitude to risk ? The adviser said the policy would definitely pay off the mortgage ? And the adviser said there would be a lump sum in addition at the end of the term

The response I received from Royal & Sun Alliance in February 2003 was in summary: - ? They were not involved with the advice given and so are not in a position to comment on the suitability of the policies purchased. ? Likewise, they are unable to comment upon whether or not I was properly advised. ? They state that they were merely acting as product provider and carried out my agent's instructions to effect the policies requested. ? They suggested that I referred my concerns to the firm that sold the polices (they clearly didn't read my letter properly as I stated that the firm is no longer trading) and if this was not satisfactory the Financial Ombudsman Service. Once again they seem to have misread my letter. I am unable to complain to the Financial Ombudsman, as the firm is no longer trading. The response I received from the FSCS in February 2003 was in summary:

- ? I would need to provide documentary evidence to support the fact that the financial adviser did not properly explain the stock market risk of my policies. ? They are unable to compensate for my first policy as this was sold prior to 28th August 1988. ? They will consider claims where a policy was not suitable for an investors needs at the time it was sold to them, however the fact that my policy has performed poorly due to poor stock market returns does not mean that the policy was not necessarily an unsuitable product. ? They cannot compensate if a product that was suitable at the time it was sold, subsequently experiences lower market returns than were hoped for.

I have not taken any further action since February 2003 and I have been monitoring the ongoing campaign that Which Consumer Association has been running to see if any further developments arise. I recently spoke to my current financial advise and he has advised that I now surrender my polices or sell them to a company that specializes in trading endowments. However, he has also advised that I continue to seek compensation for the mis-selling.

Can anybody please provide me with advice on how I should proceed and possibly answer any of the following questions: -

1. The FSCS stated in their reply that I would need to provide documentary evidence to support the fact that the adviser didn't properly explain the stock market risk of my policies. However, I have no such documentary evidence. Shouldn't the financial adviser have filled out a detailed fact find on each occasion the policies were sold and should therefore have evidence of these? Will I be able to get copies of these fact finds if the adviser and firm are no longer trading?

1. I see from the endowment action web site that a press release dated

27th March 2003 could possibly be good news for any complaint against Royal & Sun Alliance. The FSA fined them £950,000 over the mis-selling of endowments between January 1997 ? July 1999. In, light of this decision, does this indicate that older policies such as my own should also be considered. What action would you advice that I take? ? as in my previous response from Royal & Sun Alliance they seem to push the blame onto the firm that sold the endowments and state that they were merely acting as product provider and acting on their agents request.

1. Can I claim against the individual financial adviser who sold the three polices? I accept that he is no longer working as a financial adviser and I assume he is now retired. However he was still working as an adviser when I originally began my complaints in December 2002.

I would appreciate any help you could provide on this matter. Many thanks in advance