Standard Life to probe own conduct over pension sales

The insurance giant said it was opening the review following a wider FCA investigation that looked into whether firms made customers aware of their potential eligibility for enhanced annuities and whether they encouraged them to shop around in order to potentially get a higher income from another provider.

While the City regulator “found no evidence of an industry-wide or systemic failure to provide customers with sufficient information about enhanced annuities” following their scrutiny of seven firms that between them account for two-thirds of the UK annuity market, it has now singled-out Standard Life to look more closely at its own conduct.

Responding to the FCA’s request, the firm said in a statement: “At the request of the FCA, Standard Life will conduct a review of all non-advised annuity sales from July 2008 to identify whether our customers received sufficient information about enhanced annuities to make the right decisions about their purchase. It is not yet possible to determine a reliable estimate of the quantum of any redress associated with this process.

Our Annual Report and Accounts 2015 noted a contingent liability in light of the potential for a requirement to compensate customers flowing from the FCA’s review. It is possible that the financial impact may be mitigated by our group professional indemnity insurance.”