The FCA has today announced that it has taken enforcement action of £30,792,500 against Standard Life Assurance Limited, part of the Phoenix Group, following the outcome of its industry-wide annuity review. The action relates to Standard Life Assurance’s non-advised telephony practices for customers who may have been entitled to an enhanced annuity during the period 1 July 2008 to 31 May 2016.

Phoenix acquired Standard Life Assurance Limited from Standard Life Aberdeen in 2018. At the time of the acquisition this was a known issue and an agreement was put in place to cover the costs of the enforcement action and associated fees (referred to as ‘a deed of indemnity’). Accounting provisions had also been made and declared previously to redress those customers who had been impacted.

Susan McInnes, CEO of Standard Life Assurance Limited and Phoenix Group Director, Open Business comments:

“While this is an historic issue and one we were aware of when we acquired Standard Life Assurance Limited, we would like to apologise to affected customers, all of whom we have already been in contact with as part of the programme of customer redress. We have also reviewed and updated our telephone practices as part of this process.

“Whenever we get things wrong, we seek to learn from our mistakes and are absolutely focused on putting things right. Our remediation programme for affected customers is progressing well and we expect it to be completed by the end of the year.”

Key facts:

• FCA Review: In 2016 the FCA asked a number of firms to carry out a review relating to the sale of enhanced annuities.
• Subsequently the FCA’s Enforcement Division began investigating those firms to see if any further action was necessary.
• Review and Redress: Standard Life Assurance Limited initiated a review and redress programme in 2016 and has been working with the FCA to put things right for those customers who may have been impacted. 80,000 customers were potentially impacted and an outcome has already been reached for over 80% of them. Customer engagement with the review has been high and provisions have been made for redress.
• Indemnity: When Standard Life Assurance Limited was acquired by Phoenix in 2018 a capped deed of indemnity was put in place with Standard Life Aberdeen to cover potential enforcement action and associated fees.

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Enquiries

Shellie Wells
Head of Corporate Communications
Phoenix Group
020 3735 0922 / 07872 414 137
shellie.wells@thephoenixgroup.com

Nicki Lundy
Head of Media Relations
Standard Life Assurance Limited, part of Phoenix Group
0131 245 2737 / 07515 298 302
nicki_lundy@standardlife.com

Notes to editors

Phoenix Group is a European life consolidator, specialising in the acquisition and management of closed life insurance and pension funds – known as heritage books. Phoenix is the largest consolidator of heritage life insurance books in Europe but also runs an open book underpinned by a strategic partnership with Standard Life Aberdeen. The Group is a member of the FTSE 250 index, and has over 10.4 million policyholders and £240 billion of assets under management – including the recently acquired Standard Life Assurance business. With operations in the United Kingdom, Ireland and Germany, the Group has five operating life companies which hold policyholder assets, and a distribution business, SunLife Limited.