16th Oct 2014 05:30
LONDON (Alliance News) - First Direct, the online and telephone bank owned by HSBC Holdings PLC, is to pay compensation for selling complex investments without checking if they were appropriate for customers, the Financial Times reports.
First Direct is the latest lender to admit offering complex products without having procedures to ensure they were suitable and that investors fully understood what they were getting, breaking financial regulations. The bank also said some information it provided through its share dealing service about certain investments ?was unclear? and ?could have misled? customers, the FT said.
Customers will receive compensation based on any losses made on the investment as well as interest, while taking into account dealing fees, the FT added, citing documents it said it had seen. Investors who have made a gain will not be compensated, the bank said.
http://www.ft.com/cms/s/0/d06e4ccc-544a-11e4-84c6-00144feab7de.html?ftcamp=crm/email/20141016/nbe/UKBusiness/product&siteedition=uk#axzz3G086dxu8
By Steve McGrath; [email protected]; @stevemcgrath1
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