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.