Pension holders to be repaid £11.5bn

Investors mis-sold pensions will be paid a total of £11.5bn in compensation, according to FSA chairman Howard Davies. In 1998 the Financial Services Ombudsman commenced its mis-selling review into the marketing of private pensions to clients who would have been better advised to remain in existing occupational schemes. Davies said 98% of cases have now been resolved and while final figures are still unknown, around £11.5bn is expected to be paid to 1.1 million investors.