HSBC fined £10.5 mn for mis-selling to elderly

In addition to the fine, HSBC has agreed to pay compensation totalling about £ 29.3 million,the Financial Services Authority said in a statement.

Written by AFP
London | December 6, 2011 01:04 AM IST

1 min read

Britains financial regulator said on Monday that it had fined HSBC £10.5 million after one of the banking giants subsidiaries missold financial retail products to elderly clients.

In addition to the fine, HSBC has agreed to pay compensation totalling about £ 29.3 million,the Financial Services Authority said in a statement.

The FSA on the basis of a study of 2,485 NHFA customers Between 2005 and 2010,said the HSBC unit,NHFA Limited,had sold savings products to elderly customers with an average age of nearly 83 who were likely to die before the recommended five-year investment period expired.

FSA said it fined HSBC because of inappropriate investment advice provided by one of its subsidiaries,NHFA Limited to elderly customers.

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