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 seeks experienced professional opinion on its decision-making

FCA seeks experienced professional opinion on its decision-making

Regulator opens applications for positions on three statutory panels

Isabel Baxter
clock 10 November 2025 • 1 min read
FCA warns on 'poor' advice consolidation practices

FCA warns on 'poor' advice consolidation practices

Including on debt and incentives

Sahar Nazir
clock 31 October 2025 • 3 min read
FCA urged to 'think again' on targeted support annuity rules

FCA urged to 'think again' on targeted support annuity rules

Regulator’s MoneyHelper signpost criticised as a ‘real limit’

Isabel Baxter
clock 03 September 2025 • 2 min read