Standard Life wins court battle on Sterling fund losses

Standard Life has won its court battle against 11 professional indemnity insurers, after it argued their policies should have covered the losses it incurred on asset-backed securities held by its Sterling fund.

The insurers have been given leave to appeal the decision, and it is unlikely that an appeal will be heard before Autumn 2012. 

The fund lost 5% of its value in early 2009 due to its holdings in asset-backed securities, despite being marketed as a 'cash' fund. The losses sparked outrage among advisers and investors, who said marketing material had been misleading.

Standard bowed to pressure by injecting cash into the fund, and last year was fined £2.45 million by the Financial Services Authority, which said it had misled investors.