HSBC will look to compensate victims of misselling in its subsidiary Nursing Home Fees Agency in cases as early as 1991 – 14 years before it bought the firm.
Last week, the FSA issued the biggest-ever ever retail fine of £10.5m against HSBC over inappropriate investment advice by NHFA to 2,485 clients between 2005 and 2010. HSBC agreed to compensate these clients, which is expected to cost £29.5m.
But the bank, which bought NHFA in 2005, says it will also consider client complaints dating back to NHFA’s launch in 1991 on a case by case basis.
Age UK has pledged to return any commission it received for referring members to NHFA.
HSBC chief executive Brian Robertson says: “We will take responsibility for all NHFA customers, including those from before HSBC bought the company in 2005, to ensure this issue is entirely resolved. I am profoundly sorry for what happened at NHFA.”