FSA fines N&P £1.4 million and agrees £50 million for customers and FSCS
April 18, 2011
On April 18 2011, the FSA fined Norwich and Peterborough Building Society ("NP") pound;1.4 million for failing to give its customers suitable advice in relation to the sale of Keydata products.
NP will make available ex gratia payments to all customers to ensure they do not lose out as a result of their investment, amounting to approximately pound;51 million in total.
During a period of over three years NP advised 3,200 clients to invest in Keydata's life settlement products. NP failed properly to assess the financial circumstances of many of its customers, designating them as having a higher tolerance of risk than was appropriate. This led to unsuitable sales.
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