Phoenix Group – which purchased Standard Life Aberdeen’s insurance business last year – confirmed that the regulator was considering further action in its annual results, published on March 5.
It said that this referral related to the FCA’s thematic review into non-advised annuity sales, which was completed last autumn.
In a statement Phoenix Group says: “Standard Life was referred to the FCA enforcement division to consider whether any of the issues identified in the thematic review warranted further intervention.”
It is understood that as part of the takeover Phoenix has a deed of indemnity which would require Aberdeen Standard Life to meet any fines or redress from regulatory action relating to activity that occurred before this sale date.
This review investigated annuity sales from 11 providers. The FCA wanted to establish whether firms provided customers with sufficient information about enhanced annuities. It also reviewed whether providers encouraged customers to shop around in order to get a potentially higher retirement income.
Publishing the outcome to this review the regulator said: “ The FCA found no evidence of an industry-wide or systemic failure to provide customers with sufficient information about enhanced annuities through non-advised sales.’”
However, it added it had concerns about a “small number of firms when significant communications took place orally – normally over the phone – which was likely to have caused some customers to purchase a standard annuity when they may have been eligible for an enhanced product.”
These FCA said it was asking these firms to review all non-advised sales from July 2008 and, where appropriate, provide redress; these firms are also being investigated by the FCA’s enforcement division to determine whether further action is necessary.
At the time the FCA’s, director of supervision – investment, wholesale and specialist – Megan Butler said: “While we have found particularly poor behaviour at a small number of firms, there is no evidence that firms have systemically failed to provide customers with the information required by our rules.”
The FCA has not provided any further statement about whether it requires Standard Life to now take further action.
