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Clerical Medical reimbursing customers following pricing errors

HBOS-owned UK fund manager Clerical Medical has announced that it will reimburse customers affected by price errors on some of its unit-linked pensions, life and bonds policies.

The price discrepancies on the unit-linked funds stemmed from data input errors. The error affected some Clerical Medical unit-linked pensions, life and bonds policies, although there was no impact on with-profits policies or open-ended investment company funds.

The fund prices have already been corrected, Clerical Medical said.

The fund management firm also said that less than 5% of its two million customers were affected by the error. Furthermore, of those affected, the majority benefited from the pricing error, and will be allowed to keep their gain.

For the estimated 59,000 policies that lost out, the average loss of which was GBP95, adjustments are being made to make good the loss. Customers who lost out with an in-force policy will be written to and allocated additional units by mid-December, while customers who lost out with an out-of-force policy will also be written to and reimbursed.