Standard Life has put aside £175m for its misselling of non-advised annuities, it has been revealed.

In its full year results, Standard Life outlined that is has reserved £175m for the Financial Conduct Authority’s (FCA) thematic review into its past annuity sales.

Last October, the FCA announced that a ‘small number’ of pension providers including Standard Life had been ordered to review their historic annuity sales.

The FCA’s review considered whether non-advised customers had missed out on an enhanced annuity, due to providers’ sales practices.

While analysts initially estimated that Standard Life would need to pay £125m in redress for misselling of annuities, it has now been revealed that this figure has increased by £50m to £175m.

Standard Life has said that it will continue to assist the FCA with the review, going forward.

“At the FCA’s request, we shall be reviewing all non-advised annuity sales from July 2008 to identify whether our customers received sufficient information about enhanced annuity options. It is essential that conduct risk is properly understood and managed throughout this process in order to deliver fair customer outcomes,” the company stated.

“We are working with the FCA to put in place a process to ensure we provide affected customers with appropriate redress.”

The provision of the £175m led Standard Life’s pension and savings business profits to fall by £58m to £130m for the full year.

“Our IFRS profit before tax includes a non-operating impact of £175m relating to a provision for an estimate of the redress payable to customers, the costs of conducting the review, and other related expenses,” Standard Life chief financial officer Luke Savage explained.

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