A little dent in its activities. At least it's something I suppose....
------------------
Independent
Banking giant HSBC is set to pay out £40 million in fines and
compensation after one of its subsidiaries sold savings products to
elderly customers who were likely to die before the recommended
investment period was up, the City regulator said today.
The Financial Services Authority (FSA) has issued its biggest ever
retail fine of £10.5 million to HSBC after NHFA "inappropriately"
advised 2,485 customers to invest in "unsuitable" investment bonds
between 2005 and 2010. The FSA estimates NHFA customers will be paid a
total of £29.5 million in compensation.
In a number
of cases, the individual's life expectancy was below the recommended
five-year investment period and as a result customers with shorter life
expectancies had to make withdrawals from their investments sooner than
recommended.
The products were sold to elderly
individuals entering, or already in, long-term care and in many cases
these elderly customers were reliant on the investments to pay for their
care.
HSBC has apologised for what happened at NHFA,
which closed for new business in July, and reassured affected customers
that they would be contacted within weeks.
No comments:
Post a Comment