N&P fined £1.4m by FSA for Keydata failings
The Financial Services Authority (FSA) has fined Norwich & Peterborough Building Society £1.4 million and ordered it to make payments to customers totalling an estimated £51 million for providing them with bad advice.
Over a number of years, customers of the building society were advised to invest in Keydata life settlement products, which are based on corporate bond investments.
In many cases, people already in retirement were moved off of low-risk products and into the relatively high-risk Keydata portfolio, putting their income in jeopardy at an age when they would have no realistic way to earn back any lost savings.
FSA acting director Tracey McDermott says firms must pay attention to individuals' financial circumstances if they are to treat them fairly when delivering advice.
N&P chairman Gordon Horsfield adds that the ex gratia payments being made are in exchange for customers' rights to claims relating to the administration of Keydata in 2009.
He stresses that the building society is very sorry for any failures in its advice ahead of the incident - and that it apologises for anxiety and hardship suffered.
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