Partly Cloudy

Partly Cloudy

max temp: 20°C

min temp: 15°C

ESTD 1874 Search

Ipswich: Independent financial adviser welcomes FCA action on ‘misleading’ promotion

09:00 17 June 2014

Peter Herd of Essential IFA staging his protest outside the Chelsea Building Society in Ipswich in 2010.

Peter Herd of Essential IFA staging his protest outside the Chelsea Building Society in Ipswich in 2010.

A Suffolk-based financial adviser who staged a one-man protest in 2010 over what he claimed was an unfair sales promotion has welcomed a move by the Financial Conduct Authority (FCA) to impose fines totalling more than £3.8million.

shares

The FCA said yesterday it was fining Credit Suisse International (CSI) £2.398m for failing to ensure that promotions for its Cliquet Product were clear and not misleading, with the Yorkshire Building Society (YBS), which acted as distributor for the product, also to be fined £1.429m.

According to the FCA, the product was designed to offer capital protection and a guaranteed minimum return but with the “apparaent potential for significantly more” if the FTSE 100 share index performed consistently well.

The authority concluded, however, that the probability of achieving the maximum return was “close to 0%” despite the figure being used as a key feature of the promotion.

Tracey McDermott, the FCA’s director of enforcement and financial crime, said: “Financial promotions are often the primary source of information for consumers and in this case CSI and YBS let their customers down badly. These promotions were a serious breach of the requirement to be clear, fair and not misleading.”

The FCA said that both firms had agreed to settle an an early stage of its investigation and had therefore received a 30% discount on their fines.

News of the fines was welcomed by Peter Herd of Ipswich-based Essential IFA, who staged a demonstration outside the Ipswich branch of the Chelsea Building Society (part of YBS) in November 2010 when the investment scheme in question was being promoted.

“I am very glad that the FCA has taken this matter seriously,” he said. “However, it is no longer just about banks and building societies; there are now online providers offering products without authorisation.

“People need to make sure they seek independent advice and to make sure the organisation or individual is authorised to conduct business and give advice.”

A spokesman for the Yorkshire Building Society Group said yesterday that it fully accepted the FCA decision and apologised to its customers. “We have agreed with the FCA a process under which our affected customers will be given the option to exit their account and receive an appropriate rate of interest, or to retain their account until maturity.

“We will be communicating further information to affected customers (including those who have closed their account), over the coming weeks,” he added.

Credit Suisse also said that it accepted the FCA’s findings, adding: “We have taken this matter very seriously, have fully co-operated with the FCA’s investigation and have agreed a comprehensive redress process.”

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Frederico Santa-Barbara of Jacobsen and Neil Cleverly, superintendent of the Rio Olympic Golf Course, with a selection of equipment supplied by Jacobsen for the course ahead of the 2016 Olympic Games.

Two machines built at the Ipswich factory of turf maintenance equipment company Ransomes Jacobsen have been delivered to the Rio Olympic Golf Course in Brazil.

Adnams chairman Jonathan Adnams outside the company's brewery and distillery complex in Southwold.

Southwold-based Adnams today reported a 12% increase in first half profits to £962,000, with one-off gains on the sale of three pubs offsetting a dip in revenues.

The Treasury has sold the first tranche of shares from the taxpayer-owned stake in the Royal Bank of Scotland Group.

The Treasury has sold the first tranche of shares in Royal Bank of Scotland for £2.1billion, but the taxpayer has made a loss of around £1bn on the sale.

Natasha Davies, Tom Holloway, Ollie Prescott, Rachel Wilby and Omar Khattab, the five new appointments at Cloud Media Insight.

Ipswich-based media monitoring and analysis firm Cloud Media Insight has appointed five new executives.

Stansted Airport, part of the Manchester Airports Group.

Independent management, design and construction consultancy Pick Everard is set to expand into the aviation sector.

The new branding for Tarmac following its acquisition by CRH.

Iconic contruction brands Tarmac and Blue Circle have been combined to create a UK leader in the building materials sector.

Millions have been paid to passengers since 2012

There was a £900,000 increase in the amount paid to delayed passengers in just one year – from £1.4m in 2013/14 to £2.3m in 2014/15.

Anne Holt of Baker Tilly.

East Anglia’s many ports and logistics businesses are being advised to prepare for new European Union customs duty arrangements which come into force next year.

Alan Cowie, communications and events officer at the| New Anglia Growth Hub.

New Anglia Growth Hub is to host a funding workshop, bringing together five providers of business support under one roof.

The Birketts Tour de Wellbeing cycle team, from left, Matthew Potter, Ben Burt, Jolyon Berry (front) Greg Jones and Tom Shape.

Members of the employment team at regional law firm Birketts raised more than £1,000 for Breast Cancer Care by taking part in the Tour de Wellbeing virtual cycle race, held by EMCOR UK to coincide with the Tour de France.

Most read

Most commented

Topic pages