Review of non-advised Pru annuities sold after July 2008

Prudential UK & Europe wishes to advise its customers that it has agreed with the Financial Conduct Authority (FCA) to review annuities sold without advice after 1 July 2008 to its contract-based defined-contribution pension customers.

The review will examine whether these customers were given sufficient information about the availability of, and their potential eligibility for, enhanced annuities. The review will also look at whether these customers could have potentially received a higher income from Prudential or another provider. In due course Prudential will contact customers who may not have been given sufficient information and will provide redress, where appropriate.

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Customer Q&A

Our customers do not need to do anything. We have started to review annuities sold without advice after 1 July 2008 to customers who saved in one of our contract-based defined contribution pension schemes and then purchased an annuity with Prudential. We will work as efficiently as possible but the review will take some time. In due course we will contact customers who may not have been given sufficient information and will provide redress, where appropriate.

The review covers annuities sold without advice after 1 July 2008 to customers who saved in a Prudential contract-based defined contribution pension scheme. Some of these customers may not have been given sufficient information about the availability of, and their potential eligibility for, enhanced annuities. The review will also look at whether these customers could have potentially received a higher income from Prudential or another provider.

This is a type of personal pension policy arranged by you, or a workplace pension arranged by your employer.  

This is a type of annuity that may pay a higher regular retirement income if your life expectancy has been shortened because of your lifestyle (for example if you smoke) or your medical history.

The FCA launched a review of annuity sales practices in 2015 and the results were published in October last year. The FCA concluded that many firms provided clear and comprehensive information to customers and written communication tended to meet the standards required. However, the FCA had some concerns about telephone calls where customers may not have been given sufficient information about the availability of, and their potential eligibility for, enhanced annuities. The review will also look at whether these customers could have potentially received a higher income from Prudential or another provider.

We are focussing on this review, where we have agreed with the FCA to examine whether contract-based defined contribution pension customers were given sufficient information after 1 July 2008 about the availability of, and their potential eligibility for, enhanced annuities. The review will also look at whether these customers could have potentially received a higher income from Prudential or another provider.

No. We will continue to make annuity payments as normal. Annuity payments will not be reduced as a consequence of this review.

In due course we will contact anyone receiving a spouse’s annuity payments or ‘second life’ annuity payments where the contract-based defined contribution pension customer who originally purchased that annuity after 1 July 2008 may not have been given sufficient information about the availability of, and their potential eligibility for, enhanced annuities. The review will also look at whether these customers could have potentially received a higher income from Prudential or another provider.

In due course we will get in touch with the representatives of any deceased contract-based defined contribution pension customers who originally purchased their annuity from us after July 2008 and who may not have been given sufficient information about the availability of, and their potential eligibility for, enhanced annuities. The review will also look at whether these customers could have potentially received a higher income from Prudential or another provider.

The Financial Services Authority (FSA) provided feedback to firms in June 2008 following a thematic review of written communications. The FCA, which succeeded the FSA, considers it appropriate for the review period to start following this feedback.

The review will consider contract-based defined contribution pension customers who purchased an annuity from us after 1 July 2008 whose net pension pot was worth £5,000 or more.

No. Only non-advised sales are included in this review. If you have any concerns about the advice you received on an annuity purchase, you should contact the financial adviser who advised you at the time.

No. This review relates only to customers who saved in a Prudential contract-based defined contribution pension and then purchased a Prudential annuity, without receiving advice, after 1 July 2008.

No. This review relates only to customers who saved in a Prudential contract-based defined contribution pension and then purchased a Prudential annuity, without receiving advice, after 1 July 2008.

We will provide updates on this webpage in due course. If you would like to discuss these questions and answers with a member of our customer service team please call us on 0800 678 3166 or on +44 (0)1903 768 639 from outside the UK. These lines are open between 8.30am and 6pm, Monday to Friday. We are unable to provide specific information about individual cases or other elements of the review at this stage.