The Financial Services Authority (FSA) has fined Royal & SunAlliance (R&SA) £1.35m over "systemic weaknesses" in its internal controls arising across areas of its pensions division.
The FSA's investigation and remedial action undertaken by R&SA has identified up to 13,500 consumers whose cases had, in error, not previously been identified for review by R&SA.
Without this work those consumers may not have been paid redress exceeding £32m.
Carol Sergeant, FSA managing director for regulatory processes and risk said: "The FSA expects firms to identify and provide compensation to all consumers due redress and to complete the pensions review on time.
"This is a significant penalty to reflect the serious nature of R&SA's past failings in its handling of the review. R&SA failed in its identification of customers who might have been due redress, it failed to complete review
work on time and its management failed to monitor the process effectively."
