The Financial Services Authority(FSA) has fined a major life assurance group £750,000 for serious flaws in the way it dealt with complaints of misselling endowment mortgages  – and for failing the FSA.

 The fine on Guardian Assurance and Guardian Linked Life Assurance – part of the Aegon group – was the second-largest imposed by the FSA for mishandling mortgage endowment complaints.

It would have between higher if the assurer had not co-operated in settling the matter, the regulator said.