Lloyds TSB are concerned about pensions misselling liabilities and have set aside nearly £1bn to cover future liabilities and claims for pensions that were not sold correctly.
This liability, it is believed, is the second largest misselling liability provision behind Prudential and accounts for over 7% of the total estimated UK pensions misselling bill.
Lloyds are now the parent company of Scottish Widows and it is believed that a large slice of this provision may have been set aside for liabilities for Scottish Widows also.
Who is going to pay for it? Is it Lloyds Shareholders? Is it the 'with profits' fund of Scottish Widows?
It is interesting to note that Scottish Widows significantly reduced their bonus rates this year.