20 January 2010
The Financial Services Authority (FSA) has today put out a
release confirming that insurance company Standard Life is to be
fined £2.45m.
The fine was for systems and controls failings relating to its
Pension Sterling Fund (See TPAS news items dated 9th and
11th February 2009). The fund was typically advertised
as being invested "wholly in cash". When the fund was devalued by
Standard Life concerns were raised as to the marketing literature
and risk rating of the fund. Shortly afterwards Standard Life
restored the fund to its previous value after making a payment into
the fund themselves.
The FSA found that Standard Life failed to ensure that there
were proper systems and controls over the Fund, specifically in
relation to the marketing material produced. This resulted in a
risk of unexpected capital losses being incurred for those
customers invested in the Fund. The full FSA press release can be
read here:
FSA Standard Life Statement
