ARTICLE · 20 JUNE 2012

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A discussion of Standard Life Assurance Ltd v Ace European Group [2012] EWHC 104 (Comm).

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Rob Merkin

Leisa Mikkelsen

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Standard Life Assurance Ltd v Ace European Group [2012] EWHC 104 (Comm)

Decision

Standard Life operated a Life Pension Sterling Fund, which included a substantial proportion of asset backed securities. From 2007, asset backed securities became increasingly illiquid and, with effect from 14 January 2009, Standard Life took the decision to switch to a different source of prices. This led to a one-day fall of 4.8 per cent in value of units in the fund. Following complaints by customers, Standard Life concluded that some 64 per cent (by value) of customers (worth £124 million) would have mis-selling claims. Standard Life decided that it would restore the 4.8 per cent fall and then invite claims, and it paid those sums into the fund.

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