Industry heavyweight
Aviva would not be taking “significant” action after the Financial Conduct Authority (FCA) called on firms to review their sales of annuities.
In a statement sent to
Reuters, a spokeswoman for Aviva said the insurer welcomes the FCA announcement regarding the results of its industry-wide review of non-advised annuity sales practices.
The regulator revealed last week that it found no systemic failure to provide customers with sufficient information about enhanced annuities. However, the FCA had concerns at a “small number” of firms which may have erred in customer engagement.
The FCA said the firms should look again at their annuity sales from 2008 onwards and compensate people who did not get the right deals.
Aviva, however, is not planning to take any “significant” retrospective action.
“Our work is primarily focused on supporting further future improvements to the market, rather than on retrospective action. We don’t anticipate having to take any significant retrospective action,” the Aviva spokeswoman told
Reuters.
Another insurance giant, Legal & General, said it was “pleased” with the outcome of the FCA review, according to
Reuters.
Unlike Aviva, Standard Life said earlier this week that it will review its non-advised annuity sales for the past eight years upon the request of the FCA.
Following its review and appeal to companies, the FCA is now investigating firms to determine whether further action is necessary.
Related stories:
Standard Life to review sales upon FCA orders
Some UK insurers risk regulatory action over malpractice
