Life assurer Scottish Amicable has been fined £750,000 by the City watchdog for mis-selling endowment mortgages.
The Financial Services Authority said the group, which is owned by Prudential, failed to assess whether customers were prepared to take the risk their policy might not be large enough to pay off their mortgages when it matured.
It said the size of the fine reflected the "serious nature" of the firm's failings, including not acting adequately to guidance issued by the regulator in December 1999, which re-iterated the standards which must be met when the policies are sold.
The fine is the fourth largest issued by the authority since it took on its full powers in December 2001 and the third largest fine involving endowments.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article