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

Scott Sinclair
clock

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA releases further details on bereavement processes review

FCA releases further details on bereavement processes review

Review to focus on platforms, advisers and wealth managers

Sophia Panayi
clock 13 May 2026 • 2 min read
Adviser fined £755,000 and banned from financial services

Adviser fined £755,000 and banned from financial services

Put customers at risk ‘for personal financial gain’

Sophia Panayi
clock 12 May 2026 • 2 min read
Three arrested in FCA crackdown on suspected illegal financial promotions

Three arrested in FCA crackdown on suspected illegal financial promotions

Properties searched

Michael Nelson
clock 05 May 2026 • 1 min read