During the back end of 2010, it was revealed that Scottish Equitable had fallen short in its administration, which meant that customers suffered a large amount of loss and a fair amount of difficulty. Scottish Equitable are a company providing pensions for a minimum 2 million people in the United Kingdom.
The Financial Standards Agency (FSA) had realised 300 administration related problems during 2009. The first major problem was that Scottish Equitable could not trace the 200,000 of their customers who had moved from their homes without informing employers of a new address.
Scottish Equitable were also made to pay consumer redress of £60 million by the time 2010 was coming to an end.
The FSA are going to be disbanded and will be divided into multiple organisations, and this has got many people worried about Scottish Equitable and their poor administration.
Samir El-Alami of PensionCalculator.org, a leading pension and annuity website, commented on the problems: “This is a major concern and one which I am sure the government is taking seriously.
“One positive of such a case as this taking place, sad as it is for those affected, is that those in power have had problems in the system going forward.”
Mr El-Alami has gone on to say that a great deal of people were affected. It is also important that every effort and more is made to compensate those unfortunate individuals who are ending up with a retirement income that suffered losses.