Financial institutions fined over "misleading" marketing
The UK's financial regulator has fined Credit Suisse and the Yorkshire Building Society (YBS) for "misleading" marketing of an investment product.
Credit Suisse was handed a £2.4m fine, and YBS was told to pay around £1.5m.
The institutions had promoted the products' potential maximum return, which investors had almost no chance of getting, the Financial Conductor Authority (FCA) said.
Credit Suisse designed the product, called "Cliquet", to provide a minimum return, with the apparent potential for getting back significantly more if the FTSE 100 performed consistently well.
The FCA said that the probability of getting back a minimum return was between 40% and 50%, while the chance of a maximum return was "close to 0%".
"These promotions were a serious breach of the requirement to be clear, fair and not misleading," said Tracey McDermott, FCA's director of enforcement and financial crime.
The product was sold to 83,777 people, who had a total of £797m invested with YBS the distributor responsible for approximately 75 percent of the total amount invested.
Both companies have accepted the findings.
Read more about the finance industry in our report on banking.
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