From The BBC:
Standard Life is to reimburse 97,000 customers who lost 5% of their money when the value of its Pension Sterling Fund, worth £2.1bn, was cut last month.
The insurer faced a storm of protest from savers and financial advisers who accused it of misleading them about the fund’s underlying investments.
Instead of being invested largely in cash, much of the fund is invested in riskier “mortgage-backed” assets.
Standard Life originally planned to reimburse only a few of the customers.
“Standard Life would like to take this opportunity to apologise to any customers who have been affected by the fall in value of this fund, ” said John Gill, managing director of customer service at the financial services group.
“In hindsight, some of the literature supporting the fund fell short of our own high standards, and it is important that we put this right.”
Cash injection
The company shocked its savers when it announced the cut to the fund’s value on 14 January.
It then insisted it had done n…
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