A life insurer will be spending £100 million to compensate a number of its customers after the value of their pensions dropped by an average of £1,000 a day.
Standard Life announced that 97,000 of its customers, who invested in its Pension Sterling Fund which had reduced in value by 4.8 per cent in a day, will be receiving compensation . The insurer has said that it failed to provide customers with clear information on the funds holdings.
In a statement, the insurer said: "We will make an immediate cash injection into the fund with payments provided to those customers who have left Standard Life in the period since the valuation adjustment was announced. We will also be writing to customers who invested in the Pension Sterling fund to inform them of the way in which they can register any additional complaints they have in relation to this issue."
However, Standard Life said that fund will still be run along the same lines and stated that customers should acknowledge that the value of the fund could decrease.




