The UK’s FSA has fined Standard Life £2.45 million for inappropriately marketing its Pension Sterling Fund. The Times Online reports that the FSA found that the insurer published misleading marketing material, including statements that the fund was 100 percent invested in cash, when it was actually holding bond-like floating-rate notes.
Standard Life allegedly marketed the fund as a stable investment in an unpredictable economy. The FSA claims that Standard Life targeted investors who were close to retirement who did not realize that the fund might lose value.
Last January, the fund lost approximately £100 million of its value, leading the insurer to inject £102.7 million into the fund to compensate investors.