Insurer Royal & Sun Alliance is set to be fined by the City watchdog in connection with the group's review of pensions mis-selling.

The insurer, based in Horsham, said the Financial Services Authority (FSA) had indicated it would be fined, though at this point the regulator had not said what the fine was for or how much it would be.

But the group stressed the penalty was in relation to the way it had carried out its review of pensions mis-selling and was not a fine for actually misselling pensions.

It is not expecting the fine to be large.

The pension misselling review was launched in 1994 to look into claims that people had been wrongfully sold private pensions between April 29, 1988, and June 30, 1994.

To date, more than a million consumers have collectively been offered compensation of more than £9 billion and the FSA expects about £11.5 billion to be offered by the end of the review.

In October, Prudential was fined a record £650,000 by the FSA following "unacceptable"

delays in making redress payments to people who were missold pensions.

The FSA declined to comment on the R&SA fine.