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FSA fine R&SA £1.35m

The Financial Services Authority (FSA) has fined certain life insurance companies in the Royal & Sun Alliance group (R&SA) £1.35 million.

This comes as a result of systemic weaknesses in their internal controls arising across significant areas of the pensions review during the period up to August 2000.

The FSA&#39s investigation and remedial action undertaken by R&SA has identified up to 13,500 consumers whose cases had, in error, not previously been identified for review by R&SA.

Without this work those consumers may not have been paid redress exceeding £32 million.

Carol Sergeant, managing director for regulatory processes and risk at the FSA, says: “The FSA expects firms to identify and provide compensation to all consumers due redress and to complete the pensions review on time.

“This is a significant penalty to reflect the serious nature of R&SA&#39s past failings in its handling of the review. R&SA failed in its identification of customers who might have been due redress, it failed to complete review work on time and its management failed to monitor the process effectively.”

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