The group has revealed that it will conduct a review into whether a deficiency in the sales process of its Enhanced Transfer Values and Unregulated Collective Investment Schemes could have lead to customer detriment.
However, the allegations may be dropped if the investigation finds no evidence of misconduct.
In its annual bondholders report, the company said that money lost due to mis-selling may be recoverable under its group insurance arrangements.
Towergate said that individuals in firms who perform various ”controlled functions” are required to be “approved persons”, before acknowledging that any disciplinary action against these individuals could have “adverse effects” on its business.
“In addition to the UK regulations with which we must comply, the parent company of Advent Funds, which owns a substantial interest in the group, is based in the US,” it said.
“This potentially exposes the group to some areas of the US regulatory environment such as economic sanctions and export controls.
“We are currently working with Advent Funds to identify the key areas and ensure we are compliant with the regulations.”
The FCA declined to comment on individual cases.
