On Air One to Three Christy Dehaven | 1:00pm - 3:00pm

Watchdog demands investment sales review

FSC


An independent review of the Isle of Man Bank's investmentĀ selling practices has been ordered by the Financial Supervision Commission.

Specifically it will look at all sales since January 1, 2008 to people over the age of 70.

It follows an FSC probe into a case involving an 80-year-old with terminal throat cancer, Norman Hensher, who was sold a £500,000 Aviva pension by the bank, which he had no hope of paying back.

He died in March 2008, having invested the cash into an immediate life annuity.

Of that, £485,000 went to Aviva, while the Isle of Man Bank salesman pocketed the other £15,000 as commission on the sale.

The Financial Supervision Commission's findings state that Isle of Man Bank did offer Mr Hensher alternatives to the policy he demanded, which he declined.

However, despite being made aware he had cancer, the bank's records didn't appear to show whether they knew the severity of it, nor whether the staff involved made any attempt to find that out.

The FSC has ruled the bank's internal procedures were not followed in full during the advice and sign-off stages of the investment.

In addition to the independent review, the commission is undertaking separate enquiries into those involved in the sale, and have requested Isle of Man Bank make a number of changes to its internal procedures.

More from Isle of Man News