Insurer Prudential has been fined £23.8m by the Financial Conduct Authority (FCA) for not failures related to non-advised sales of annuities.
Britain's markets watchdog said Prudential failed to make sure customers were consistently advised that by shopping around they could get a higher rate on their annuities, which pay pensioners a fixed
income for life. The insurer also failed to ensure that documentation used by call handlers was appropriate and failed to monitor calls with customers properly.
"Prudential failed to treat some of its customers, who could have secured a better deal on the open market, fairly. These are very serious breaches that caused harm to those customers. Prudential is now rightly focussed on redress and today's financial penalty reinforces the cardinal obligation of fairness that firms owe to customers," Mark Steward, executive director of Enforcement and Market Oversight at the FCA said.
These are very serious breaches that caused harm to those customers"
Prudential has offered approximately £110m in redress to 17,240 customers. The insurer did not dispute the FCA's findings.
The fine relates to the period between July 2008 and September 2017, the FCA said, adding that as of Sept. 19, 2019.