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FCA fines Prudential ?23.9m over annuity sales

By Michele Maatouk

Date: Monday 30 Sep 2019

FCA fines Prudential ?23.9m over annuity sales

(Sharecast News) - Prudential has been fined £23.9m by the Financial Conduct Authority for failures relating to non-advised annuities sales.
The financial watchdog said that between July 2008 and September 2017, Prudential failed to ensure that customers were consistently informed that they may get a better deal if they shopped around and to take reasonable care to organise and control its affairs in breach of its obligation to ensure fair treatment of customers.

It also failed to ensure that documentation used by call handlers was appropriate and to monitor calls with customers properly.

Mark Steward, executive director of enforcement and market oversight at the FCA, 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 focussed on redress and today's financial penalty reinforces the cardinal obligation of fairness that firms owe to customers."

As of 19 September, Prudential has offered around £110m in redress to 17,240 customers.

The company got a 30% discount for agreeing to accept the FCA's findings.

At 1100 BST, the shares were up 1.1% at 1,488.50p.

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