"Santander UK Plc has been fined £12,377,800 by the Financial Conduct Authority (FCA) after the regulator uncovered serious failings in the way it offered financial advice from its bank." Published:- 26/03/2014
Source: fca.org.uk
INVESTIGATION
1. Repeated communications and warnings about suitability of advice were announced to the industry by the Financial Services Authority (FSA).
2. A mystery shopping exercise and wealth management thematic review was conducted by the regulator.
FINDINGS
1. Santander UK failed to ensure its advisers were fully getting to grips with customers’ personal circumstances & risk appetite before making a recommendation.
2. Santander UK failed to ensure its information pertaining to products and services given to customers investing were clear and not misleading.
3. Santander UK failed to carry out regular ongoing checks to ensure the investment was meeting customer needs.
4. Its new advisers were not properly trained before being allowed to give investment advice.
5. Santander UK failed to properly monitor the quality of investment advice including ensuring poor advice were picked up.
RECTIFICATION
1. Santander UK has stopped giving financial advice in branches since late 2012.
2. In agreement with the FCA, Santander will contact all affected customers and, for any sales that were sub-standard, redress will be paid where due.
3. A "Premium Investment" account were promoted as offering a tailored service including to reallocate investments and rebalance portfolios. Customers who did not receive any service may get redress.
SETTLEMENT
1. Santander UK agreed to an early settlement received a discount of 30%.
