UK's Standard Life wins indemnity claim against insurers
02 February 2012
Standard Life has won an indemnity claim against its insurers for the £100 million cost of compensating 97,000 customers who overnight in January
2009 lost 5 per cent of their "cash fund" savings.
The Financial Services Authority fined the company £2.45 million for "serious systems and controls failings" that allowed misleading marketing material for its Pension Sterling fund.
Hit by the Lehman Brothers crash and stuck with 13 per cent in sub-prime mortgages and subsequent losses, the fund, which three years ago was worth £2.2 billion, was beset by hundreds of complaints from investors and suffered much bad publicity.
The fund had once been marketed as a low-risk, cash-based investment.
Two weeks following the news of the 4.8-per cent loss, Standard intiated steps to limit the damage by topping up the fund to restore customers' savings to their previous level.