FCA drops Scottish Widows from life insurance investigation and won't be taking enforcement action

 
Rebecca Smith
Scottish Widows was one of six businesses being investigated by the FCA
Scottish Widows was one of six businesses being investigated by the FCA (Source: Scottish Widows)

The Financial Conduct Authority said this morning it has opted not to take any enforcement action against Scottish Widows as part of the watchdog's investigation into the life insurance sector.

In March 2016, the FCA announced investigations into six businesses to assess the fair treatment of long-standing customers and gauge just what customers were told about exit fees on their products.

Today, it said the probe into Scottish Widows had concluded and there was "insufficient basis for taking any enforcement action".

Read more: Scottish Widows secures £880m pension buy in deal with Littlewoods

The financial regulator did though, say it will be raising "a number of issues" uncovered as part of the investigation with the firm in its supervisory engagement.

Investigations into Prudential, Countrywide Assured, Old Mutual, and Abbey Life are continuing, with the FCA saying this morning that no decisions regarding them had been reached yet.

"No inferences should be drawn from the closure of the Scottish Widows case concerning the continuing investigations," the FCA said in its update, adding that the market will be updated when decisions are made on the status of the remaining investigations.

When the probe was launched in 2016, the FCA said it was vital customers were treated fairly and given the correct information "on an ongoing basis" to help them make financial decisions.

Read more: Standard Life Aberdeen slumps after losing £109bn of Scottish Widows assets

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