The Financial Services Authority (FSA) has fined insurer Royal Liver £550,000 for mis-selling with-profits policies to customers who had no “demonstrable” need for them and which exposed them to excessive investment risk.

The fine was levied in respect of more than 2,000 with-profits policies from 1 July 1999 to 15 September 2003.

Margaret Cole, the FSA’s director of enforcement, said: “This was a serious case of mis-selling, particularly as a significant number of Royal Liver Assurance’s customers were nearing retirement age and did not need the cover they were sold.

“The failings were systematic and arose from weaknesses in the firm’s sales and compliance processes and persisted over a long period of time,” she added.