Mon, 05 Dec 2011
By STEVE HAWKES, Business Editor
BANKING giant HSBC faces a nearly £40million bill after being found guilty of ripping off almost 2,500 pensioners.
The City regulator today said elderly customers who were mis-sold products were more likely to DIE than benefit from their investment bonds.
The Financial Services Authority fined HSBC £10.5million its biggest ever retail fine.
It also said the bank was set to pay £29.3million in compensation.
The 10 biggest Financial Services Authority fines
HSBC has been handed a £10,5m fine, but it is not the biggest financial slap on the wrist handed down by the FSA.
£33,320,000 JPMorgan Securities Ltd
Failing to protect client money by segregating it appropriately.
£17,500,000 Goldman Sachs International
For weaknesses in controls resulting in failure to provide FSA with appropriate information
£17,000,000 Shell Transport and Trading Company, Royal Dutch Petroleum Company and the Royal Dutch/Shell Group of Companies
£13,960,860 Citigroup Global Markets Limited
Breaching FSA Principles 2 and 3 by failing to conduct its business with due skill, care and dilligance
For inappropriate investment advice provided by one of its subsidiaries, NHFA Limited (NHFA) to elderly customers.
£8,000,000 UBS AG
For systems and controls failures that enabled employees to carry out unauthorised transactions involving customer money on 39 accounts
£7,700,000 Barclays Bank plc
For failures in relation to the sale of two funds
£7,000,000 Toronto Dominion Bank
For repeated systems and controls failings around the pricing of sophisticated financial products
£7,000,000 Alliance & Leicester Plc
For serious failings in its telephone sales of payment protection insurance
£6,895,000 Willis Limited
For failings in its anti-bribery and corruption systems and controls.