The FSA(Financial Services Authority) has fined Swinton Group Ltd, the insurance broker, £770,000 for failings in the sales process of their single premium payment protection insurance.

After discussions with the the FSA, Swinton has also agreed to offer refunds to over 350,000 customers who paid for the PPI.

The FSA have found that Swinton’s PPI(Payment Protection Insurance) sales process was flawed. Swinton have been found to have unacceptable levels of non-compliant sales through including PPI automatically in their insurance quotes without first establishing a customers interest or need for the PPI cover. (more…)

Virgin Money the consumer credit wing of the Virgin empire has applied for a full banking licence.

Virgin Money made their application to the FSA(Financial Services Authority) two weeks ago. The application can take up to 6 months to go through the system but if passed, which is probably a given, Virgin Money plant to open an online bank offering to take deposits and provide mortgages.

Their strategy is to build an Internet presence and develop a branch network on the back of this. As a part of this process the new company will investigate acquisitions as part of this process. A second bid for Northern Rock is a possibility.

A consortium is probably the route, with private equity, that Virgin will take with the acquisitions. (more…)