All data is delayed
See More

HSBC fined for mis-selling to elderly

Dec 05 2011 14:28
London - The Financial Services Authority (FSA) regulator fined HSBC £10.5m for mis-selling products to elderly customers.

The FSA said in a statement that HSBC's NHFA subsidiary had given "inappropriate investment advice" to elderly customers, and added that the British bank had estimated it would have to pay a further £29.3m in compensation to them.

The FSA said the advice and sales given were unsuitable because in several cases the life expectancy of the individual was below the recommended five-year investment period.

"NHFA was trusted by its vulnerable and elderly customers. It breached that trust to sell them unsuitable products. This type of behaviour undermines confidence in the financial services sector," said Tracey McDermott, the FSA's acting director of enforcement and financial crime.

"HSBC, who owned NHFA, has now recognised the issues and taken steps to do the right thing. They have been given credit for that - but for some customers it will be too late," she said.
fsa  |  hsbc


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills..

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote