30th Sep 2019 13:03
(Alliance News) - Prudential PLC on Monday was fined GBP23.9 million fine by a UK regulator after failing to tell customers they could get a better pension deal by shopping around.
The Financial Conduct Authority said the insurer failed to "consistently" inform customers between July 2008 and September 2017 that they could get a better deal by shopping "around on the open market".
Insurers are required by UK regulators to explain to customers that they could get a better rate if they look elsewhere in the insurance market.
FCA Executive Director of Enforcement & Market Oversight Mark Steward said: "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 focused on redress and today’s financial penalty reinforces the cardinal obligation of fairness that firms owe to customers."
Prudential's fine could have totalled GBP34.1 million but the company accepted the regulator's findings and therefore qualified for a 30% discount.
Shares in Prudential were 0.4% higher at 1,479.00 pence each in London on Monday afternoon.
By Eric Cunha; [email protected]
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