Yorkshire Building Society fined £3.8m
What was so bad about these investments? They had pretty much zero chance of achieving maximum returns.
The YBS (we're not typing the full name out all the time) were selling a product called Cliquet which was put together by Credit Suisse International (CSI) and flogged to almost 84,000 customers who between them, stumped up somewhere in the region of £797 million.
The Financial Conduct Authority said that Cliquet was aimed at "unsophisticated investors with limited investment experience" through distributors like YBS and offered a guaranteed minimum return plus the potential for significantly more if the FTSE 100 performed well.
However, the regulators said that the probability of achieving only the minimum return was 40-50% and there was slim-to-piss all chance of the maximum return being achieved and that the maximum return figure was given "undue prominence" in both CSI’s product brochures, which YBS approved and showed to clients.
YBS was fined £1.4 million and CSI £2.4 million.
Tracey McDermott, of the FCA, said: "CSI and YBS knew that the chances of receiving the maximum return were close to zero but they nevertheless highlighted this as a key promotional feature of the product."
YBS said customers affected by this will be given the option to exit their account and receive an "appropriate rate of interest". How about that for a crappy apology?