Santander fined by FSA
Feb
21
Written by:
21/02/2012 13:42
Spanish bank fined over delayed action on limited cover
Santander has received a £1.5m fine for being too slow to explain to customers whether some of its investments were covered by the Financial Services Compensation Scheme (FSCS).
According to the BBC, in 2008 customers began to query whether some of Santander's investment products were covered by FSCS which guarantees the safety of some savings if a financial institution goes bust.
However Santander did not tell them until 2010 that FSCS cover was limited and continued to sell the products during this period. During that time, Santander sold £2.7bn of these products - known as structured products.
The Financial Services Authority (FSA) told the BBC that the bank was not quick enough to confirm whether these were covered, especially at a time of financial uncertainty.
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