Scot Eq fined £2.8m and agrees to pay £60m client redress

Scott Sinclair
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Scottish Equitable has been fined £2.8m by the FSA for a series of administrative failings including underestimating the value of customers' future pension benefits to the tune of almost £7m.

The life and pensions company, which was re-branded Aegon after its parent company last year, has begun a customer redress exercise following the breaches between 2002 and 2010. It estimates the cost of redress will be £60m, of which £30m will be paid by the end of the year. Scottish Equitable identified about 300 systems and controls failings, five of which were serious, the FSA says, and led to customer detriment. Between 2002 and 2010 it failed to ensure effective internal governance arrangements were in place to manage the risks its customers were exposed to in a number of area...

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