FSA fines Barclays £7.7 million for investment advice failings

Financial Services Authority

On 18 January 2011, the Financial Services Authority ("FSA") fined Barclays Bank plc ("Barclays") £7.7 million for failures in relation to the sale of two funds.

Between July 2006 and November 2008, Barclays sold Aviva's Global Balanced Income Fund and Global Cautious Income Fund to 12,331 people with investments totalling £692 million.

There were a number of serious failings in the way the funds were sold. These included:

• Failing to ensure the funds were suitable for customers in view of their investment objectives, financial circumstances, investment knowledge and experience;
• Failing to ensure that training given to sales staff adequately explained the risks associated with the funds;
• Failing to ensure product brochures and other documents given to customers clearly explained the risks involved and could not mislead customers; and
• Failing to have adequate procedures for monitoring sales processes and responding promptly when issues were identified.

Date

14 January 2011