More trouble is brewing for Scottish Widows as the Scottish Widows Action Group questions the status of some of its phase one pension review cases.
The group says it has already discovered two cases which they claim could fail the misselling test if they were retested second time around.
It says Widows fall in bonus rates has lowered fund values and the clients may have been better off staying in their occupational schemes.
Actuaries believe there could be circumstances where cases fail second time around following the revision of bonuses, although they stress many factors need to be taken into consideration.
More than 150 policyholders are threatening to sue Widows accusing it of cutting bonuses more than necessary. Widows pension with-profits terminal bonus for 1998 plunged from 7 per cent to nil.
AKG Consulting operations director Nigel Balchin says: "If bonuses affect fund values and they go down that might bring into question whether they would pass a retest."
Stevens, of Bristol based solicitors Richmonds, says: "The funds could fail the PIA test if these rates continue at the same levels. IFAs have sold the product on what they have been told by Widows. They cannot have expected bonus rates to fall as low as 1 per cent."
Scottish Widows were unavailable for comment.