Prudential fined pounds 75,000 for problems with PEP schemes
Tuesday 28 January 1997
Prudential has also paid pounds 25,000 in compensation to 6,000 disadvantaged customers, which amounts to less than pounds 5 each. However, the final bill will rise as Imro's disciplinary tribunal has ordered Prudential to pay investigation and tribunal costs which have yet to be set.
The company is the first to be reprimanded and fined for problems with PEP schemes.
Imro said Prudential Personal Equity Plans had admitted that it failed to carry out reconciliations and corrections of PEP client money accounts, failed to notify Imro that these had not been done and failed to have adequate compliance arrangements in place.
The problematic PEPs were self-select and single-company products. Prudential stopped marketing these products in 1993 after realising they were difficult to administer. Prudential continues to market a unit trust PEP.
A spokesman for Prudential said: "Imro's fine of pounds 75,000 on Prudential Personal Equity Plans related to problems with reconciliation of PEP client bank accounts prior to 1994.
"When they came to light, remedial action was taken and no customers were disadvantaged. Procedures were put in place to ensure these problems will not occur again. These problems were administrative, involving delays in crediting interest to customers' accounts."
The rules that were broken concerned provisions to ensure companies held the correct amount of money for clients and were aware of the individual sums of money held for each client at all times.
Prudential faced six charges, including the failure between July and November 1993 to make up a deficit in its self-select PEP client money accounts.
peopleContenders for Time magazine's Person of the Year are a mixture of the good, the bad and the holy
tvSteven Moffat reveals the actor was dying to take on the role of the Time Lord and says he is excited to see what he will do with the character
sportBayern Munich 2 Manchester City 3: City come from two down to beat reigning European Champions
newsAs the world remembers Mandela the hero, the prison where he spent 27 years seems all the more brutal
arts + ents... and a chance to paint Booker Prize winning author Hilary Mantel
danceUnder Tamara Rojo's inspired direction, it seems possible that it could challenge the dominance of the Royal Ballet. We meet some established names and rising stars
travelDiscover Uruguay's jet-set beach resort, an Atlantic enclave with plenty of art and culture to explore on the side
The ten coldest places on Earth
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Nelson Mandela memorial: Cheers, jeers and a masterclass from Barack Obama that stole the show
- 1 It’s shameful that our universities have accepted gender segregation under pressure from the most oppressive religious fanatics
- 2 Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
- 3 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 4 Selfie at funeral: Cameron squeezes in on Obama snap at Mandela memorial
- 5 Is Facebook making us forget? Study shows that taking pictures ruin memories
- < Previous
- Next >
iJobs Money & Business
£60000 - £85000 per annum + BONUS + BENEFITS: Harrington Starr: A leading asse...
£45000 - £70000 per annum + Bonus + Benefits: Harrington Starr: Technical Impl...
£65000 - £90000 per annum + Bonus + Benefits: Harrington Starr: Rogue Trading ...
£35000 - £45000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...