STANDARD LIFE WINDFALL COULD BE DELAYED
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| Article date: 11/10/2005 : 17:01:53 |
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The life insurance company Standard Life needs to sort out its differences with the Financial Services Authority (FSA) if it is to float on the stock market as planned.
There is a dispute about the way the Edinburgh firm has dealt with endowment policies and if its 2.5 million members are hoping things can be sorted out so they can receive cash or free shares.
If Standard Life does float as planned in the summer of 2006, its value would be between £4 billion and £6 billion and its members would get shares worth about £1,000 on average or the money in cash.
The FSA wants the firm to make concrete promises on assisting endowment policy holders who will complain about mis-selling and on carrying through mortgage assurances to 600,000 customers.
The firm admitted that it was in talks with the FSA about a few details to sort out before a possible stock flotation.
A spokesman said: "Our plans for demutualisation are at an advanced stage. Before proceeding, the company must assure itself that there are unlikely to be major concerns on the part of the regulator or the independent experts who must report to the courts.
"To that end, we are engaged in regular, full and open discussions on aspects of the demutualisation programme."
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