Standard Life Assurance officials said five employees were fired after an internal investigation of the firms pension and group insurance sales network uncovered a commission scheme that left clients with losses totaling C$1.8 million (US$1.2 million), according to Michel du Four, a spokesman for the Montreal-based firm.
The scheme involved independent insurance brokers kicking back to the employees a portion of sales commissions paid by clients. Standard Life said it plans to reimburse the 80 clients affected. Mr. du Four said the company has started legal proceedings in Quebec against the five employees and four independent insurance brokers it alleges were involved in the scheme in a bid to recover the money.
Mr. du Four said the investigation started last February and the last employees involved were dismissed in October. He said the company issued a press release about the situation now because "lots of people were not aware of it, and now that the investigation is completed, we wanted our brokers and customers to be aware of it.