Mortgage fine lands FSA in doghouse

THE Financial Services and Markets Tribunal is expected to lay bare the shortcomings in the Financial Services Authority's role as judge and jury in its decision to fine Legal & General £1.1m over the mis-selling of endowment mortgages.

The FSMT, led by Judge David Mackie, is likely to come down hard on the FSA over the way it decided L&G's fine.

Judge Mackie is today due to set down the FSMT's final decision in the case, which could save L&G from having to pay the fine.

City observers were last night quick to point out that L&G's full evidence had not been heard until the tribunal itself would stand in the life assurer's favour.

But the tribunal's decision - and the ramifications - will not be known until the FSMT's judgment is published.

Even a partial victory for L&G could be hugely damaging for the FSA by opening the floodgates for others to appeal hefty fines.