Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

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

by Daniel Grote on Dec 18, 2012 at 11:09

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 here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets

From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Look up the shares

  • Standard Life PLC (SL.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us


On the road

Click here to find out more from the Audience Development team.


Ex-Schroders exec Noach joins Santander

by Robert St George on Jul 30, 2014 at 08:16

Sorry, this link is not
quite ready yet