Prudential has today followed Standard Life in launching a review of non-advised annuity sales in the wake of an FCA inquiry.

The company said it had agreed with the FCA to review annuities sold without advice after 1 July 2008 to its contract-based defined-contribution pension customers.

The news comes after Standard Life this morning revealed it had set aside £175m as part of its past business review.

Prudential pledged to “work as efficiently as possible but the review will take some time”.

It told customers via its website: “In due course we will contact customers who may not have been given sufficient information and will provide redress, where appropriate.”

It informed customers that if they bought a Prudential annuity through a financial adviser, this will not be included in the review.

It said: “If you have any concerns about the advice you received on an annuity purchase, you should contact the financial adviser who advised you at the time.”

A statement read: “Prudential UK & Europe wishes to advise its customers that it has agreed with the Financial Conduct Authority (FCA) to review annuities sold without advice after 1 July 2008 to its contract-based defined-contribution pension customers.

“The review will examine whether these customers were given sufficient information about the availability of, and their potential eligibility for, enhanced annuities. The review will also look at whether these customers could have potentially received a higher income from Prudential or another provider. In due course Prudential will contact customers who may not have been given sufficient information and will provide redress, where appropriate.

“Our customers do not need to do anything. We have started to review annuities sold without advice after 1 July 2008 to customers who saved in one of our contract-based defined contribution pension schemes and then purchased an annuity with Prudential.

The FCA launched a review of annuity sales practices in 2015 and the results were published in October. The FCA had concerns about telephone calls where customers may not have been given sufficient information about the availability of, and their potential eligibility for, enhanced annuities.

The review will also look at whether these customers could have potentially received a higher income from Prudential or another provider.