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Banking giant HSBC has been fined £10.5m for giving "inappropriate investment advice" to elderly customers.
It is the largest ever retail fine to be issued by the Financial Services Authority (FSA). The authority said one of the HSBC's subsidiaries, NHFA Limited (NHFA), was found to be mis-selling products to its customers. In the five years from 2005 to 2010, the NHFA advised 2,485 customers to invest in asset-backed investment products, typically investment bonds, to fund long-term care costs for elderly customers. The products were sold to individuals entering, or already in, long-term care - and in a number of cases the individual's life expectancy was below the recommended five-year investiment period. HSBC estimates that the amount of compensation to be paid to NHFA customers will be about £29.3m in addition to the fine....Read more here---> Banking Giant HSBC Is Fined £10.5m For Giving Inappropriate Investment Advice To Elderly Customers | Business | Sky News
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Three businessmen who made £9.5million from a disgraced company that lured the elderly into investing in stock market schemes can be identified today. Philip Spiers, Nick Tyler and Peter Fisher were senior executives at the Nursing Home Fees Agency, which persuaded pensioners as old as 94 to gamble their life savings on risky investments they might not live to see pay out. Mr Spiers, 61, who founded NHFA in 1991, received £3.8million when the firm was bought by HSBC six years ago.
Mr Tyler, 53, who was chief executive until earlier this year, had his stake valued at £2.85million as did Mr Fisher, 57. But while the trio became millionaires and live in luxury country homes, thousands of frail care home residents saw their life savings devastated by rogue financial advisers. On Monday, HSBC was fined a record £10.5million and ordered to repay £29.3million after NHFA – which became its subsidiary – was found to have mis-sold investments to 2,485 pensioners between 2005 and 2010. Victims, who were on average aged 83, were convinced to part with an average of £115,000, often nest eggs from the sales of their homes.....Read more here---> HSBC scandal: The senior executives who made a fortune exploiting the elderly
Now the bank has said it will consider complaints from before when it took over NHFA in 2005. Claims will be accepted from elderly customers or their families.
'Sympathetic'
The Financial Services Authority fined HSBC £10.5m on Monday for NHFA's unsuitable sales of financial products to people expected to die before the recommended investment period was up.
The bank said it was likely to pay an estimated £29m in compensation to victims. NHFA had 11,000 customers while it was owned by...Read more here--> BBC News - HSBC opens new compensation route for NHFA mis-selling