Standard Life Assurance has been fined £2.45 million by the Financial Services Authority (FSA) after "serious systems and controls failings" saw many people exposed to misleading marketing material for its Pension Sterling Fund.
Margaret Cole, FSA director of enforcement and financial crime, said: "The FSA takes the issue of misleading financial promotions very seriously and the fine announced today demonstrates our commitment to the principle of credible deterrence.
"It is critical that consumers are given an accurate understanding of the nature of investment products and the risks involved."
The FSA said the promotion for the fund was not "clear, fair and not misleading" as the fund was referred to in marketing material to be wholly invested in cash when in fact the fund was invested in Floating Rate Notes.
Concerns surrounding the pensions market could see many people seek additional ways to fund their retirement.
This could lead to a rise in the popularity of equity release schemes which boost a homeowner’s income with money drawn from the value of their property.
The FSA noted that Standard Life "cooperated fully with and agreed to settle at an early stage of the investigation" otherwise the firm would have been fined £3.5m.
