Standard Life swamped by complaints

STANDARD LIFE is having to deal with 600 endowment mis-selling complaints each week - twice the number it was receiving nine months ago, chief executive Sandy Crombie has admitted.

The upsurge, triggered by last month's critical report from the Treasury Select Committee, will weaken his efforts to persuade the company's 2.6m policyholdersto back demutualisation.

But Crombie said the 1,600 jobs cuts announced alongside the plans to shed its mutual status would not affect Standard Life's ability to deal with mis-selling complaints. 'We have no plans to reduce the resource behind this important work,' he said.

Crombie faces a stormy ride from policyholders this week over the flotation plans and is also likely to be criticised for fat-cat pay deals for himself and his predecessor, Iain Lumsden.

Research by Standard Life shows that nearly 50% of policyholders still want the company to stay mutual. Standard needs more than 75% of members who vote at the special general meeting in 2006 to support demutualisation.

Crombie admits it will be tough convincing customers to vote for change. But he said: 'We will write to members setting out why the board believes that demutualisation is in the best interests of policyholders.'