UK insurance giant has mortgage fine cut

British insurer Legal & General was today celebrating after having a £1.1m (€1.6m) fine for mis-selling endowment mortgages slashed almost in half.

The Financial Services and Markets Tribunal announced late last night that the fine imposed by City watchdog the Financial Services Authority should be cut to £575,000 (€836,700).

The move marks the end of a long legal battle for L&G which began with the FSA’s investigation in July 2000.

But the life insurer failed in its bid to get the regulator to pay its costs, and it is now left with a £2 million legal bill.