Watchdog worry as bank targets bonds at elderly
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The Financial Ombudsman Service has raised concerns about an unnamed high-street bank it says is targeting older customers with investment bonds.
It says: “A group of cases involved a specific high-street financial institution that targeted the sale of investment bonds at older consumers. The bonds contained a degree of risk that prompted us to ask whether the consumers understood and were suited to this type of financial product.
We upheld many cases in favour of the customers.”
In August 2009, the FOS voiced concerns over an increase in unsuitable investment advice given to elderly people. Money Marketing has revealed cases where bank advisers sold risky funds to elderly clients with little investment experience.
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Readers' comments (1)
Exasperated me | 27 May 2010 10:07 am
They ALL do it and have always done so despite regulation. When you consider that only 16 people supervise a bank the size of Barclays you have to wonder what surprises are in store IF the FSA ever charges the banks enough to fund effective supervision.
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