HSBC is set to claw back thousands of pounds of bonuses from executives after its long term care advice subsidiary was fined for mis-selling bonds to elderly customers.
The bank was hit by a record £10.5m fine and ordered to pay £29.3m in compensation last December by the Financial Services Authority (FSA) after poor advice was uncovered at the Nursing Home Fees Agency (NHFA).
The claw backs are thought to reflect the reputational and financial cost of the elderly care scandal, the Telegraph reports.
It comes after Lloyds Banking Group became the first British bank to exercise its power to strip executives of previously-awarded pay.
Lloyds stripped a number of directors of about £1m in bonuses as a penalty for the mis-selling of payment protection insurance, which cost the bank £3.2bn.
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