State Street to pay PensionBee £724k after index error

State Street to pay PensionBee £724k after index error

State Street Global Advisors will pay PensionBee £724,000 after an error in the composition of an index meant clients were faced with financial losses.

In a statement to the stock exchange this week (June 24), the pensions provider said it expects the payment by July 2.

The error was made by the LSE subsidiary FTSE Russell in the composition of the FTSE all share (excluding controversies) index, for the period between November 18, 2020 and February 5 this year.

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FTSE Russell incorrectly excluded certain stocks from the index which resulted in a reduced performance. 

PensionBee said the error "affected numerous funds offered by State Street Global Advisors to its clients, including one fund offered to PensionBee."

In March, PensionBee had paid around £664,000 to its customers in relation to the error, to ensure they did not suffer any financial loss as a result. 

In the same month the DC pension consolidator said it was considering floating on the London Stock Exchange to allow it to invest in future growth.

PensionBee said it had been in dialogue with State Street Global Advisors over the past few months and was pleased at the outcome.

PensionBee intends to invest the recovered capital in growth and product development.