Tribunal Judegement

Legal & General Group PLC
27 May 2005




FSMA Tribunal Judgement


The Financial Services and Markets Tribunal ('the Tribunal') has today delivered
a further decision in the case between Legal & General Assurance Society Ltd 
('Legal & General') and the Financial Services Authority ('FSA').


Today's decision builds on the provisional view announced by the Tribunal in
January that 'there should be a reduction in the penalty imposed by the FSA'.
The FSA had imposed a penalty of £1.1 million. The Tribunal has reduced this to
£575,000'.


The Tribunal also stated that 'it remains of the view that Legal & General were
justified in feeling aggrieved by the process by which the Regulatory Decision
Committee's ('RDC')'s decision was arrived at'. In January, the Tribunal
criticised some of the FSA's past disciplinary processes and the lack of
independence of the RDC. The FSA has subsequently established a top-level Review
of its enforcement and disciplinary process, which we welcome.


David Prosser, Group Chief Executive said 'I believe the Review set up by the
FSA is a serious and thorough attempt at establishing a fair process of
adjudication. This is fundamental to the operation of regulation in our sector.
We fully support a firm regulatory environment operating in a fair and
even-handed manner.'


For further information contact:



Investors:                                     Media:
Peter Horsman                                  John Morgan
Head of Investor Relations                     Media Relations Director
020 7528 6362                                  01737 375353


Nicola Marshall                                Tony Carlisle
Investor Relations Manager                     Citigate Dewe Rogerson
020 7528 6263                                  07973 611888




Notes to editors



The Tribunal's judgement is available on:



http://www.financeandtaxtribunals.gov.uk/decisions/seldecisions/
financialservices.htm


                      This information is provided by RNS
            The company news service from the London Stock Exchange