In 2016 the Financial Conduct Authority (FCA) asked a number of firms to review the sale of certain non-advised annuities. Prudential Assurance Company (PAC) is undertaking such a review with a view to providing redress to customers who suffered detriment from those sales. That review is called the “TRASP” review (short for Thematic Review of Annuity Sales Practices).
Alongside that, the FCA’s Enforcement division has been investigating PAC’s conduct in relation to those sales. It has now published its findings and fined PAC in relation to that conduct.
The FCA’s Enforcement division has concluded that, between 1 July 2008 and 30 September 2017, Prudential failed to take reasonable care in relation to non-advised sales of annuities to existing customers who were approaching retirement and who may have been eligible for a better annuity rate on the open market than the one they got from PAC.
The Financial Conduct Authority has fined Prudential Assurance Company (PAC), the pensions and life insurance business of M&GPrudential, £23.9 million for failings associated with its handling of individual annuity sales.
The review of relevant policies is ongoing and we are targeting to have offer letters to all affected customers by the end of October 2019.