Skip to content
WorldBrand.AI

Prudential plc controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

Back to profile2 entries

  1. 2020

    Prudential investment unit agrees to FINRA settlement

    Settlement

    Prudential Investment Management Services agreed to pay FINRA a $1 million fine over inaccurate or incomplete information provided to retirement-plan clients. The firm accepted the fine and censure without confirming or denying the regulator’s allegations.

    Company response

    • Remediation — Prudential Investment Management Services (Pims)

      It did agree, however, to hire an independent consultant to look into and fix the issue brought forward by Finra.

    Source excerpt

    • This hindered clients’ ability to choose their investments, Finra said.
    • Prudential Investment Management Services (Pims) has agreed to pay a $1m (£769,354, €901,560) fine to the Financial Industry Regulatory Authority (Finra) for sending the wrong information to retirement plans members.
    Source

  2. 2019

    FCA fines Prudential over annuity sales

    Fine or penalty

    The Financial Conduct Authority announced a £23,875,000 fine against Prudential for breaches relating to non-advised annuity sales. The regulator cited failures to ensure customers were consistently informed they might get a better deal by shopping around. Prudential had offered approximately £110 million in redress to 17,240 customers. The fine and the redress offer were announced in connection with the regulator's action over these sales practices.

    Company response

    • Refund or compensation — Prudential

      The company has now offered approximately £110 million in redress to 17,240 customers.

    Source excerpt

    • The Financial Conduct Authority, the City watchdog, said the failures caused harm to customers affected by the breaches between July 2008 and September 2017.
    • Prudential has been fined nearly £24m for “serious breaches” after failing to advise customers they might get a better deal if they shopped around for annuities and incentivising staff with spa breaks and weekends away.
    • Prudential apologised to customers and said it hoped to pay compensation by the end of October to most of the 35,000 people it estimates are affected.
    Source