View more on these topics

Pru’s final pay out for non-advised annuities still undecided

Insurance giant Prudential says it is still unsure how much money will have to be set aside for non-advised annuity sales in half-year results published today.

In February 2017 Money Marketing revealed Prudential had agreed with the FCA to carry out a review into whether non-advised customers were given sufficient information about the option for an enhanced annuity.

It had set aside £400m as at 31 December 2017 to cover the costs of undertaking the review and any related redress.

In the first half of 2018, Prudential agreed with its professional indemnity insurers that they would meet £166m of the group’s claims costs.

The update today says no further amount has been provided in the first half of 2019 while the total amount spent on the review, which is currently expected to be completed in 2019, remains uncertain.

In July, the FCA has handed down a fine of £30.7m to Standard Life Assurance Limited for misselling non-advised annuities.

The slowdown in industry-defined benefit pension transfers also continued, compared with the elevated volumes in the prior year.

The results also confirm Prudential’s plans to demerge its UK and European business M&G Prudential, resulting in two separately listed companies.

After the merger, shareholders will hold interests in both Prudential and M&G Prudential.

The division of the group will see Prudential focus outside the UK on the US and Asian markets.

The group’s operating profit increased by 14 per cent.



AJ Bell calls on new chancellor to simplify Isas

The chief executive of investment platform AJ Bell has called on new chancellor Sajid Javid to simplify Isa rules to close the savings gap. Andy Bell says Isas have become “unnecessarily complicated” and the complexity is a barrier to people saving more. In the open letter, Bell writes: “As the newly appointed chancellor I believe […]


FSCS receives 500 claims for collapsed Sipp provider

The Financial Services Compensation Scheme has received around 500 complaints to date regarding Lifetime Sipp according to data given to Money Marketing. The Sipp provider was placed into administration in March 2018 and went into liquidation on the 2 April 2019. The complexity of claims related to Lifetime Sipp’s books and has resulted in the […]


Sipp provider legal fight seeks donations through adviser trade body

Adviser trade body Libertatem is asking financial planners to contribute to the cost of Sipp provider Berkeley Burke’s legal battle against the Financial Ombudsman Service. The lobby group has decided to lend its weight behind Berkeley Burke’s appeal, helping form its legal case as well as raising donations. Last October, Berkeley Burke lost a High […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm