Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Standard Life fights off insurers' appeal over £100m Sterling payout

Standard Life fights off insurers' appeal over £100m Sterling payout

Standard Life has successfully fought an appeal by professional indemnity insurers against a court ruling they should cover the life company's £100 million payout to Sterling fund investors.

Standard won a court battle against 11 professional indemnity insurers in February, arguing their policies should have covered the losses it incurred on asset-backed securities held by its Sterling fund.

The insurers appeal the decision, but the appeal has been dismissed, with Standard Life awarded its costs related to the appeal. The insurers now have 28 days to decide whether to appeal to the Supreme Court. If an appeal is granted, Standard said it was unlikely the case would be heard before autumn 2013.

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

Standard bowed to pressure by injecting cash into the fund, and last year was fined £2.45 million by the Financial Services Authority, which said it had misled investors.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

1 Comment Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter