So how did N&P's advisers take the company from a safe-as-houses building society to the centre of one of the biggest mis-selling scandals of the decade?
The company was today fined £1.4m by the FSA for failing to give its customers suitable advice in relation to the sale of Keydata products. It has agreed ex gratia payments - worth some £51m - to customers to "ensure they do not lose out as a result of their investment". An independent third party review found 65% of a sample of N&P's sales of Keydata products were based on unsuitable advice. The FSA considers the level of unsuitable sales is likely to be significantly higher. But where did it all go wrong? 1) Riskiness N&P emphasised Keydata products were not linked t...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
