Pensions provider fined by FSA
Written on January 2, 2011 by Milton Reyes
Thousands of Scottish Equitable customers will receive a share of 60m following an investigation into procedures at the pensions provider .
The firm was also fined 2.8m by the Financial Services Authority for the troubles it caused for customers.
The financial penalty related to incorrect pensions calculations, not issuing thousands of policyholder documents, and failing to trace policyholders who had moved home.
According to the FSA, the fine was one of the biggest the regulator has imposed this year.
“The redress package is significant news for the customers of Scottish Equitable Plc and I am pleased that 30m will already have been paid back by the end of the month,” said Margaret Cole, of the FSA.
“This case shows the importance of getting customer administrative procedures right and fixing them quickly when they go wrong. This is a key part of treating customers fairly.”
The FSA regulates the financial services sector in the UK.
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