Prudential fined £23.8m for annuity sales

“Our systems and controls have been significantly strengthened in the past two years through a substantial investment in our business.

"Prudential no longer sells non-advised annuities to most of our customers, following a decision in February 2017 to refer customers to a panel of external providers rather than writing new annuity business”.

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In July 2019, Standard Life Assurance was also fined by the FCA over its non-advised annuity sales.

The FCA took action against Standard Life Assurance, which was sold to pension provider Phoenix Group in 2018, with regards to enhanced annuity sales between July 2008 and May 2016. 

The FCA found that Standard Life had failed to put in place adequate controls to monitor the quality of the calls between its call handlers and non-advised customers who were looking to purchase an annuity.

At the same time, the firm offered its staff financial incentives to sell annuities, which created the risk that call handlers would fail to provide customers with the information they needed to choose an annuity appropriate to their circumstances. 

The firm was ordered to pay £30.7m.

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