30 Jan, 2008
Nicole Blackmore -
FSA has banned Jonathan Leigh Hardie, of Primedale Financial
Services, from being a senior manager for mishandling mortgage
endowment complaints over a period of five years.
The FSA discovered that Hardie, a director and responsible for
compliance at the now defunct company, failed to consider his
regulatory responsibilities when dealing with complaints.
The FSA found that between January 2001 and May 2006 he did not
assess complaints fairly and objectively having already decided
that Primedale had never knowingly mis-sold an endowment policy.
The regulator found that Hardie did not investigate missing
information relating to complaints or consider the suitability of
recommendations and failed to give customers proper, fair and
balanced reasons for rejecting complaints.
It was also found that Hardie did not identify and remedy recurring
problems in Primedale's endowment mortgage complaints handling
procedures and reviewed complaints for which he was the original
As a result, the FSA says customers were exposed to the risk that
they would not receive compensation to which they were entitled.
FSA head of retail enforcement Jonathan Phelan says firms must have
in place and operate an effective complaints handling system as a
key part of treating customers fairly.
He says: "Mr Hardie was responsible for ensuring that Primedale
reviewed and responded fairly to the mortgage endowment complaints
it received but he fell a long way short of achieving this and as a
consequence has been banned from being a senior manager.
"Our action should leave firms in no doubt that the FSA places
great emphasis on the importance of adequate complaints handling
systems and individuals responsible for handling complaints should
take appropriate steps to assess complaints fairly, consistently