Non-advised annuities review
At the Financial Conduct Authority’s (FCA's) request we recently carried out a review of our annuity sales process for groups of our non-advised customers. The outcome of that review showed that in the period since July 2008 we did not always explain well enough that some of our customers may have been eligible for an enhanced annuity, and some customers may have lost out as a result.
We are committed to putting things right for customers affected by this, and we have therefore agreed with the FCA to carry out a past business review of our non-advised contract-based annuity sales.
Our past business review will apply to annuities purchased since 1 July 2008 by customers who had saved into one of our contract-based pension schemes and then purchased an annuity through Standard Life on a non-advised basis without using a financial adviser. We have agreed with the FCA that certain customers will be excluded from our review because we know already that they would not have been eligible for an enhanced annuity, including those who purchased their annuity for less than £5,000.
We expect to complete the majority of our past business review by the end of 2018, including paying any compensation that is due to affected customers. We will start writing to affected customers later in the year and into 2018.