Santander fined £1.5m over FSCS failings
Santander has been fined £1.5 million by the Financial Services Authority (FSA) for failing to confirm under which circumstances its structured products would be covered by the Financial Services Compensation Scheme (FSCS).
Customers began querying the extent of FSCS cover towards the end of 2008, but it was January 2010 before Santander clarified the position.
Over the period, the bank sold approximately £2.7 billion of structured products, including £1.2 billion after June 2009, at which point it had concluded that its Guaranteed Capital Plus and Guaranteed Growth Plan products had limited FSCS cover.
However, new customers were not informed of the limitations until January 2010.
The regulator’s acting director of enforcement and financial crime, Tracey McDermott, comments: “Considering that sales of these products took place between 2008 and 2009, a time of financial uncertainty, Santander should have moved more quickly to confirm under which circumstances FSCS cover would be available.”
Category: Banking News, Financial Services Authority, Santander News
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