Edinburgh-based Standard Life said it will conduct a review of all of its non-advised annuity sales from July 2008 to identify “whether our customers received sufficient information about enhanced annuities to make the right decisions about their purchase.”

The review is at the request of the Financial Conduct Authority.

Standard Life shares fell more than 2% after the announcement.

“It is not yet possible to determine a reliable estimate of the quantum of any redress associated with this process,” said Standard Life.

The Financial Conduct Authority last week announced a review of non-advised annuity sales by pension providers. 

Standard Life said that “as previously reported,” it has been “a participant in that review.”

Standard Life said the FCA has been looking at “whether firms made customers aware of their potential eligibility for enhanced annuities and whether they encouraged them to shop around in order to potentially get a higher income from another provider …”

The company added: “Our Annual Report and Accounts 2015 noted a contingent liability in light of the potential for a requirement to compensate customers flowing from the FCA’s review.

“It is possible that the financial impact may be mitigated by our group professional indemnity insurance.”