As has been shared by the British financial regulator, insurer Standard Life has been slapped with a fine worth a whopping 2.45 Million Pounds ($4 Million) for floating "misleading marketing material".
Standard Life, which is UK's fifth-largest life insurer, had reportedly failed to make sure that the promotion material distributed for one of its pension funds correctly reflected the fund's complete investment strategy. All the details were confirmed by the Financial Services Authority on Wednesday.
The discrepancies came to light in February last year, and once that had happened, Standard Life proceeded to inject over 100 Million Pounds into its Pension Sterling Fund in order to try and plug a sharp fall in its value over the previous month.
"We have learned important lessons from this mistake and have made significant improvements to our marketing literature processes to prevent the same thing happening again", the insurer said.
The FSA had initially planned to fine Standard about 3.5 Million Pounds, but as the insurer completely cooperated with the probe, 30% of the penalty was cut back.
"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", FSA director of enforcement, Margaret Cole, said.