An alleged scam by Standard Life employees at the company's Canadian subsidiary has cost the firm almost $1m (£685,000) and led to the dismissal of five sales and service staff.
Standard Life says its internal investigation is ongoing and the sales and service representatives and brokers responsible for the fraud are being taken to court in an attempt to recoup the money it reimbursed to clients.
Last December, Standard Life's audit procedures uncovered the scam between employees and brokers.
The investigation of the entire pension and insurance sales network found the sales and service reps had appointed brokers without the customers' knowledge, paying them fees based on the policyholders' premiums. The brokers then paid the employees a portion of the fees.
Consultants dealing with Standard Life and the affected clients have been informed. The employees and brokers were reported to the provincial regulatory bodies.
Standard Life head of public affairs in the UK Mandy Haeburn-Little says: “It is a very limited incident and no customer has been disadvantaged. A root and branch review of all systems was carried out and this could not happen again.”