CREDIT Suisse and the Yorkshire Building Society have been fined around £2.4m and £1.4m respectively by the City watchdog, for marketing products unclearly.
The Financial Conduct Authority (FCA) penalties, announced yesterday, are related to Credit Suisse’s Cliquet Product.
Cliquet was designed to provide capital protection and increasing returns if the FTSE 100 performed well. The FCA found undue prominence was given to unrealistic potential returns.
Tracey McDermott, FCA’s director of financial crime, said both firms “knew the chances of receiving the maximum return were close to zero but they nevertheless highlighted this as a key promotional feature of the product. This was unacceptable”.
A total of 85,000 customers bought the product, collectively investing nearly £800m. They will be contacted by the banks and given the option to exit the investment without penalty.