Scottish Widows negligence claim launched

The first legal action against the insurer Scottish Widows, facing allegations of negligence over advice given to up to 100 pension schemes between 1999 and 2000, has been filed in the Scottish courts by WTL International, a Macclesfield-based engineering firm.



The group is being advised by the Actuarial Review Company (ARC), which is believed to be in discussions with another 24 pension funds over possible claims against Scottish Widows, owned by Lloyds TSB. ARC has alleged that as many as 100 pension schemes may have lost up to £300m because of poor advice on investment switching.

Scottish Widows is alleged to have encouraged pension schemes to give up guarantees that protected them from the risk of their members living longer than expected. ARC has estimated that successful legal challenges by all 100 schemes could cost the insurer as much as £1bn.

Scottish Widows has already written to its pension fund clients to refute ARC's claims.

Independent Comment
blog comments powered by Disqus
Career Services

Day In a Page

Apple admits it has a human rights problem

Apple admits it has a human rights problem

After years of complaints and workers' suicides in China the technology giant faces up to the human cost of its gadgets
Peter Moore: 'I feel guilty I'm the only one alive'

Peter Moore interview

'I feel guilty I'm the only one alive'
Sellafield faces nuclear option as overspending threatens plant's future

Sellafield faces nuclear option

Overspending threatens plant's future
Israel blames Iran for embassy bomb attacks

Israel blames Iran for embassy bomb attacks

Tehran rejects Netanyahu's 'lies' after diplomats in India and Georgia targeted
Former manager enjoying Apoel crack at the big time

Tommy Cassidy interview

Former manager enjoying Apoel crack at the big time
James Lawton: Patience may not be a virtue this time, Roman – Andre Villas-Boas looks all at sea

James Lawton: AVB looks all at sea

Abramovich's visits to training reinforce the idea of a coach feeling pressure from above and below
The 10 Best sledges

The 10 Best sledges

Not all of them require snow...
Procrastination: Not now – I'm busy

Procrastination: Not now – I'm busy

Confronting the real reasons for puttting things off can help us beat it
Fun in the sunset years

Fun in the sunset years

A new movie follows retirees moving to India for low-cost care and a culture of respect for the elderly. For many Britons, it's already a reality
Picture preview: Lucian Freud drawings

Lucian Freud drawings

Picture preview
Silent revolution at the Baftas as the French take top awards

Silent revolution at the Baftas

The Artist wins in seven categories, with Meryl Streep the other big success story
Whitney Houston: The diva who had – and lost – it all

The diva who had – and lost – it all

Nick Hasted charts the highs and lows of Whitney Houston's life
How Picasso won over (some of) the British

How Picasso won over (some of) the British

Winston Churchill and Evelyn Waugh hated his work, but Picasso provided inspiration for a whole generation of UK artists
Topshop: A Decade Of Design

Topshop: A Decade Of Design

When London Fashion Week starts on Friday, Topshop will celebrate 10 years backing its brightest young stars
John Prescott: 'My wife thought I'd just retire, but I'm not a slippers man'

'My wife thought I'd just retire, but I'm not a slippers man'

At 73, John Prescott isn't mellowing. In fact he's taking a shot at becoming a police commissioner