According to The Daily Mail, John Petrie was one of around 100,000 investors who lost money in the insurer’s £2.4bn pension sterling fund, which was advertised as a cash fund but had less than a fifth of the fund invested in cash.
Standard Life agreed to pay out £100m in compensation to savers who lost money after the fund dropped by 5 per cent following a revaluation in January 2009. But it refused to compensate some investors like Petrie who lost money when the fund dropped around 0.5 per cent in November 2008.
Petrie pulled out his money in December, following the loss, and after failing to get any compensation from Standard Life, took the matter to the small claims court.
Judge Hickman at Milton Keynes County Court ordered Standard Life to pay Petrie compensation, lost interest and court fees and criticised the insurer for trying to “frighten” him into dropping the case. A ruling in the small claims court does not set legal precedent but may encourage others to seek redress.