The FSA has fined Norwich & Peterborough (N&P) £1.4m for giving unsuitable advice on Keydata products, and the building society will have to payout approximately £51m in redress to customers.
N&P will make available ex gratia payments to all customers to ensure they do not lose out as a result of their investment. During a period of over three years N&P advised 3,200 clients to invest in Keydata's life settlement products backed by Lifemark. But the FSA found N&P failed to assess the financial circumstances of many of its customers properly, designating them as having a higher tolerance of risk than was appropriate, which led to unsuitable sales. Some customers were moved out of low risk products such as deposit accounts into Keydata investments, putting their income an...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes