27 May 2008
There are reports that Lloyds TSB-owned life assurer Scottish
Widows could face a £1bn legal claim over accusations that it
gave "negligent" advice to over 100 company pension schemes.
Scottish Widows has denied reports that it advised companies to
give up guarantees that protected against the risk of pensioners
living longer than expected and to transfer into its funds with a
higher exposure to shares.
According to the Actuarial Review Company, as much as
£300m could have been collectively lost and that the price of
restoring the original guarantees may be as much as £1bn.
However, a Scottish Widows spokesman refuted any legal action.
The spokesman said: "We are not aware of any High Court action
being taken against Scottish Widows by a company pension scheme on
this issue."
