Standard Life tries to get its money back over Sterling fiasco

Standard Life (SL.L) is suing 11 insurers for £100 million of losses it incurred mismanaging its Sterling Pension fund.

The Edinburgh-based insurer has filed court papers demanding professional indemnity insurers cover the £100 million compensation it was forced to pay investors in 2009, according to Bloomberg.

The fund had lost 5% of its value in early 2009 due to its holdings in risky asset-backed securities, despite being marketed as a 'cash' fund. The losses sparked outrage among investors and financial advisers, who said marketing material had been misleading.

Last year the Financial Services Authority fined Standard Life £2.45 million, saying it had misled investors.

Former Standard Life chief executive Sandy Crombie (pictured) admitted in court yesterday marketing literature for the fund had been 'hopelessly inadequate'.