Santander gets a £12.4m slap on the wrist from the FCA
Santander has been fined over 12 million by the Financial Conduct Authority for giving customers bad advice on investments, which is the largest fine ever given for this particular kind of incompetence.
The FCA said that Santander had ‘let customers down badly’ by giving customers duff advice. It claimed that the bank had not considered the risks customers were prepared to take with their investments, and gave them unclear advice.
They also rapped them for failing to train their new advisers properly, and not making the necessary checks to ensure they gave the correct advice.
Santander stopped giving in branch investment advice in 2012, and when confronted, the bank tried to make it sound like it all happened hundreds of years ago, under the reign of Henry V.
‘We regret that elements of Santander UK's historic branch-based investment sales processes did not meet the required regulatory standards and apologise to any customers who have concerns.’ A spokesman said.
Tracy McDermott from the FCA countered: ‘Customers trusted Santander to help them manage their money wisely, but it failed to live up to that responsibility. If trust in financial services is going to be restored, which it must be, then customers need to be confident that those advising them understand, and are driven by, what they need.’