Royal & Sun Alliance has been fined £1.35m by the FSA for “systematic weaknesses” in its internal pensions review affecting 13,500 consumers.
The penalty is the second time the life office has been fined by the regulator for infractions relating to the pensions review, the first for £225,000 in 1997.
FSA investigation revealed 13,500 consumers which had not been previously identified by R&SA in its pensions review. Without this action, the regulator says consumers would have missed out on £32m in compensation.
FSA managing director Carol Sergeant says: “This is a significant penalty to reflect the serious nature of R&SA's past failings in its handling of the review. R&SA failed in its identification of consumers who might have been due redress, it failed to complete review work on time and its management failed to monitor the process effectively.”
R&SA UK chief executive Duncan Boyle says: “Today's fine relates to certain past issues which we very much regret. Once the process problems were uncovered in 2000 we took urgent action including allocating substantial additional resources to ensure the issues raised were resolved.'