Foresters Friendly Society pays £55,000 over financial promotions breaches

Failure to check that financial promotions were clear, fair and not misleading before issue and associated weak record keeping during the period 1 January 2004 to June 2005 have led to a penalty of £55,000 against the Ancient Order of Foresters Friendly Society. The fine relates to communications about the TeddyTrust Child Trust Fund (CTF) and Tax Exempt Savings Plan (TESP), both aimed at grandparents, and the ‘Autumn Gold’ with-profits, whole of life insurance policy, designed for 50-80 year olds. The FSA notes that the seriousness of the failings was heightened by the elderly target market who were not prompted sufficiently to seek advice if they were unclear about the offers.