Thematic review of annuity sales practices
Standard Life plc notes the announcement on 14 October 2016 by the Financial Conduct Authority ("FCA") concerning its review of non-advised annuity sales by pension providers. As previously reported, Standard Life has been a participant in that review.
The FCA looked at 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.
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.
17 October 2016
For further information please contact:
Institutional Equity Investors
+44 (0) 131 245 5307*
+44 (0) 7515 298 608
+44 (0) 131 245 6165*
+44 (0) 0771 039 9770
* Calls may be monitored and/or recorded to protect both you and us and help with our training. Call charges will vary.
Prior to publication, this announcement contained information treated as inside information for the purposes of the Market Abuse Regulation which came into effect on 3 July 2016.
This information is provided by RNS