(December 12 – 18:30 ET) – Standard Life Assurance Co. says that a recent investigation has resulted in the dismissal of five pension and group insurance sales reps in three of its Canadian offices.

According to the insurer 80 clients were affected and approximately $1.8 million plus interest is being reimbursed by the company to these clients.

Standard Life says the investigation of the entire pension and group insurance sales network uncovered a scheme between these former employees and four brokers. The employees appointed a broker without the customers’ knowledge and loaded, in the premiums, commissions that were subsequently paid by the clients. The brokers then paid the employees a portion of these commissions.

Standard Life says it is actively seeking reimbursement from the former employees and brokers involved through legal proceedings. All were reported to the respective provincial regulatory bodies.

As a result of these incidents, Standard Life says it has strengthened its many internal controls and added new ones. The insurer says audits of these controls are regularly conducted to ensure that sales practices adhere to company policies and regulatory requirements.
-IE Staff