RBS pays out £500k after mis-selling annuity to dying man

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Royal Bank of Scotland (RBS) has been ordered by the Isle of Man regulator to pay compensation to the family of a man following a mis-selling investigation.

In December, it was revealed that 80 year old cancer sufferer Norman Hensher was sold a £500,000 annuity by an adviser from Isle of Man Bank (IOMB), a subsidiary of RBS, despite having a severely-reduced life expectancy. Hensher died before receiving any of the annuity. Aviva, which supplied the annuity, pocketed £485,000 whilst the RBS adviser who sold the policy kept a commission of £15,000 from the sale. However, following an investigation, the Isle of Man Financial Supervision Commission (FSC) ordered RBS to pay £500,000 to Hensher's relatives. The FSC's investigation found tha...

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