FSA Fines Standard Life GBP2.45m
Published / Last Updated on 19/01/2010
FSA Fines Standard Life £2.45m
by Ashley Clark, Director
The Financial Services Authority has fined Standard Life £2.45 over failings in the management and systems controls of its Sterling Fund.
In simple terms, the fund was marketing as a safe haven "cash" fund with no reference to it holding financial instruments e.g. loan stock and when Standard Life looked to down value the fund in view of falls in value of mortgage loan stock, advisers and comsumers alike were shocked to learn that the fund was not a secure as described.
The regulator found that despite the majority of the fund being invested in floating rate notes by July 2007, marketing material issued by Standard Life referred to the fund as being wholly invested in cash.
Approximately 98,000 clients were invested in the fund at the time of the dispute in 2008.
Useful links:
Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts
