View more on these topics

Court of Appeal upholds £100m Standard Life sterling fund claim

Standard Life 480

The Court of Appeal has upheld a £100m claim by Standard Life against 11 professional indemnity insurers.

Standard Life says the 11 firms, which provided PI insurance to the provider, should have covered the costs of a £100m payment it was forced to make into the Standard Life pension sterling fund during the credit crunch.

In February, the Commercial Court in London ruled in favour of Standard Life. The PI insurers appealed the decision.

The Court of Appeal has today upheld the original decision. The PI insurers have 28 days to seek leave to appeal to the Supreme Court.

Standard Life says if leave to appeal to the Supreme Court is granted, it is unlikely that an appeal would be heard before Autumn 2013.

Rowley Turton director Scott Gallacher says: “Whatever the final outcome here, it is likely the customer will ultimately pick up the costs through higher charges.”

Money Marketing first revealed a dramatic 5 per cent fall in the value of the fund, which had 97,000 investors, in January 2009.

In February 2009, Standard Life announced plans to compensate all investors who lost out as a result of the revaluation and injected £100m into the fund in the same month.

The FSA subsequently fined the provider £2.45m for serious systems and controls failings that resulted in the production of misleading marketing material in relation to the fund.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. So SLI drop one over the Sterling fund then SL pay into it so the honourable thing is done.

    Now SL claims against its PI insurers for said £100m, they reject it the courts uphold it.

    The outcome a rise in PI costs caused by something happening in the running of standard life fund?

  2. shiny happy people 18th December 2012 at 2:51 pm

    Isn’t this what SL had PI for?

    Do we want PI insurers turning down all claims?

Leave a comment