Barclays had been hit with a record fine of £7.7 million (R84.3m) for giving poor advice to investors in a pair of funds, the Financial Services Authority (FSA) said yesterday.
|||Barclays had been hit with a record fine of £7.7 million (R84.3m) for giving poor advice to investors in a pair of funds, the Financial Services Authority (FSA) said yesterday.
The UK regulatory agency said it had also secured about £60m in redress for those customers.
Barclays sold two funds run by insurer Aviva; both were hit hard by the downturn starting in late 2008.
The agency said the bank’s failures included not insuring that the funds were suitable for the clients, giving inadequate training to staff, failing to make sure that brochures were clear and complete, and lax monitoring of sale processes.
“We let our customers down and did not do all we could have done to meet the high standards that our customers expect from us and for this we are sorry,” said Paul McNamara, Barclays’ managing director of insurance and investments.
Barclays had already paid £17m in compensation and could pay £42m more, said the FSA.
About 12 331 Barclays customers invested £692m between July 2006 and November 2008 in Aviva’s global balanced income fund and global cautious income fund, the FSA said.
One in seven customers complained about the advice they were given.
“A number of customers may have invested in funds which exposed them to more risk than they were comfortable with,” McNamara said.
The fine was the largest imposed for retail investment failings, the agency said. No action was taken against Aviva. – Sapa-AP
Source: http://www.iol.co.za/barclays-pays-heavy-price-1.1014201
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