View more on these topics

HSBC to claw back bonuses for misselling

HSBC is set to strip executives of thousands of pounds in bonuses for misselling almost £300m of long-term care bonds to elderly customers.

The bank was hit with a £10.5m fine by the FSA last year after its subsidiary NHFA sold investment products to customers with an average age of 83.

The FSA also ordered the bank to pay £29.3m in compensation to investors.

Nearly 3,000 individuals were sold the five-year bonds by NHFA, investing about £115,000 each. However, a review by HSBC found that in a number of cases NHFA salesman sold the product despite knowing it was not suitable because of the customers advanced age.

HSBC bought NHFA in 2005 but closed the business last July after discovering serious deficiencies there.

The clawback comes only a week after Lloyds Banking Group stripped its directors of previously awarded bonuses as a penalty for misselling payment protection insurance. The bank revealed that it set a £3.2bn provision aside for the misselling last Friday.

The HSBC clawbacks are understood to be on a smaller scale than Lloyds, according to The Telegraph.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Maybe this will force some of the senior managers to actually look at what really happened at NHFA. NHFA was well and truly tucked up by HSBC and some deal appears to have been done in my opinion.

    NHFA did not mis-sell investments to the elderly. I’ve had several ex-clients call me asking why HSBC is paying compensation when they are entirely happy with what was done for them (and they are in profit).

    It is a very strange world and this NHFA/HSBC/FSA affair has a very nasty smell about it.

  2. I would encourage people to sign my government e petition in trying to get the House of Commons to force the FSA to take action against Bank employees in control functions and Directors who are found to be responsible for PPI insurance miss-selling.

    There is a great injustice that a Mortgage Broker or IFA can find themselves disqualified, fined and in some cases criminal action taken when they are found to be breaking rules but no action taken against Bank employees in control functions or Bank Directors.

    Our industry will not change until the FSA takes action on a level playing field so please support my e petition link below:

    http://epetitions.direct.gov.uk/petitions/30166

  3. I used to be just searching for this material for a while. Following 6 several hours of constant Goggling, last but not least I acquired it inside your world wide web webpage. I need to prepare a topic on Insurance. Your post helped me a lot in my discussion.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com