The FSA has imposed a fine of £2,170,000 for failings by Direct Line Insurance Plc and Churchill Insurance Company Limited to prevent files that the FSA had requested from being improperly altered.

During the collation of 50 complaint files requested by the regulator for review, 27 were altered improperly before they were submitted because the firms failed to act with due skill, care and diligence.

The regulator said that the “majority”” of the alterations were minor in nature and none of the changes resulted in any customer detriment.