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It has been reported that Standard Life bank is to pay out refunds to customers who lost money in a recent cash fund scandal.

A pension fund was mis-sold to many customers and was described as a cash haven for investors who did not want to risk their retirement savings.

However in marketing the product, standard life did not describe the fund properly and potential investors were not made aware that their savings where being put into risky financial investments such as toxic mortgages issued by Northern Rock.

Many investors lost money as a result of this and the company was fined £2.45 million by the Financial Savings Authority and forced to return over £100 million to investors.

Over 1500 complains have been lodged so far by investors looking for compensation.  The compensation is based on what the investor would have received had they invested in a safer investment rather than the pension fund.

It is thought that the company could end up paying millions of pounds in compensation.

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