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Release Date: 16th July 2013

To access the original FCA document, click here.


Swinton Group Limited was fined £7,380,400 by the Financial Conduct Authority (FCA) for breaches in principles related to management, customer interests, and communications during the sale of add-on insurance products from April 2010 to April 2012. This penalty, reduced by a 30% early settlement discount from an original figure of £10,543,500, reflects the severity of Swinton’s misconduct in its telephone sales practices.

Swinton’s breach of the FCA’s Principle 7 was due to insufficient information given to customers during sales, particularly concerning the optional nature of the monthly add-on products, their limitations, and exclusions. Additionally, the company’s sales strategies did not align with ensuring transparent and fair treatment of customers, violating Principle 6. Under Principle 3, Swinton was found lacking in overseeing its compliance procedures, specifically in monitoring sales calls and managing compliance risks effectively.

These failings stemmed from Swinton’s aggressive business strategy to maximise sales of monthly policies, which prioritised corporate profits over customer interests. This approach led to the mis-selling of insurance products to a vast number of consumers, risking significant customer detriment.

The FCA’s actions underscore the critical importance for financial services firms to maintain robust management systems, prioritise customer interests in their business strategies, and ensure clarity, fairness, and transparency in all communications with clients. Firms are urged to learn from Swinton’s case to avoid similar failings, which not only result in hefty penalties but also damage to reputation and customer trust.

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