Prudential fined record £650,000

12 April 2012

THE Prudential has been fined £650,000 by the Personal Investment Authority, the biggest pensions review fine so far.

The Pru's penalty was for dragging its feet in topping up the benefits of pensions it mis-sold to people retiring, or to beneficiaries of those who have since died.

The insurer also failed to keep proper records. In sample cases, the PIA found 'unacceptable delays' of six months, and said some documents could not be found and others only after 'extensive' searches and sometimes after contacting third parties.

About 1m cases where personal pensions were sold to people who may have been better off staying in their company schemes are under review across the industry to establish what redress payments these victims may be entitled to.

Since the beginning of the pensions review, the PIA has taken disciplinary action against 340 firms, resulting in fines totalling almost £9.5m.

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