PwC researching pensions mis-selling costs
Research by PricewaterhouseCoopers' into the £11bn pensions mis-selling scandal could lead to insurance companies having to fork out an extra £500m in compensation.
Up to one million victims of the personal pensions mis-selling scandal face a delay in their compensation in light of the FSA fudging the figures, the Times reports today. It is understood insurance companies may have to fork out an extra £500 million in compensation if the PwC research shows the current guidance to be inappropriate.
An FSA spokeswoman refuted reports that FSA miscalculated compensation owed to younger victims, and pointed to an announcement it made last December detailing its plans to alter PIA guidance on calculating loss, and the fact it had hired PwC to help it with this task.
The FSA advised insurance companies last December to stop processing insurance claims when it was brought to its attention that calculations for younger victims would lead to underpayment.
Punter Southall, consulting actuaries, said that each individual could be under-compensated by up to £6,000.
More than three million people have been hit by the pensions mis-selling scandal.