Partly Cloudy

Partly Cloudy

max temp: 15°C

min temp: 8°C

Search

Ipswich: Independent financial adviser welcomes FCA action on ‘misleading’ promotion

09:00 17 June 2014

Peter Herd of Essential IFA staging his protest outside the Chelsea Building Society in Ipswich in 2010.

Peter Herd of Essential IFA staging his protest outside the Chelsea Building Society in Ipswich in 2010.

A Suffolk-based financial adviser who staged a one-man protest in 2010 over what he claimed was an unfair sales promotion has welcomed a move by the Financial Conduct Authority (FCA) to impose fines totalling more than £3.8million.

shares

The FCA said yesterday it was fining Credit Suisse International (CSI) £2.398m for failing to ensure that promotions for its Cliquet Product were clear and not misleading, with the Yorkshire Building Society (YBS), which acted as distributor for the product, also to be fined £1.429m.

According to the FCA, the product was designed to offer capital protection and a guaranteed minimum return but with the “apparaent potential for significantly more” if the FTSE 100 share index performed consistently well.

The authority concluded, however, that the probability of achieving the maximum return was “close to 0%” despite the figure being used as a key feature of the promotion.

Tracey McDermott, the FCA’s director of enforcement and financial crime, said: “Financial promotions are often the primary source of information for consumers and in this case CSI and YBS let their customers down badly. These promotions were a serious breach of the requirement to be clear, fair and not misleading.”

The FCA said that both firms had agreed to settle an an early stage of its investigation and had therefore received a 30% discount on their fines.

News of the fines was welcomed by Peter Herd of Ipswich-based Essential IFA, who staged a demonstration outside the Ipswich branch of the Chelsea Building Society (part of YBS) in November 2010 when the investment scheme in question was being promoted.

“I am very glad that the FCA has taken this matter seriously,” he said. “However, it is no longer just about banks and building societies; there are now online providers offering products without authorisation.

“People need to make sure they seek independent advice and to make sure the organisation or individual is authorised to conduct business and give advice.”

A spokesman for the Yorkshire Building Society Group said yesterday that it fully accepted the FCA decision and apologised to its customers. “We have agreed with the FCA a process under which our affected customers will be given the option to exit their account and receive an appropriate rate of interest, or to retain their account until maturity.

“We will be communicating further information to affected customers (including those who have closed their account), over the coming weeks,” he added.

Credit Suisse also said that it accepted the FCA’s findings, adding: “We have taken this matter very seriously, have fully co-operated with the FCA’s investigation and have agreed a comprehensive redress process.”

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Ipswich Star visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Ipswich Star staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Ipswich Star account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

The Iron Throne featured in the Game of Thrones series, which is coming to Ipswich this month

Pretenders to the Iron Throne will have the opportunity to stake their claim as ruler of Westeros this month as the iconic seat used in the hit TV show Game of Thrones will be coming exclusively to Ipswich.

Drink-drivers in court

An Ipswich drink-driver who carried out an ‘idiotic doughnut’ while police officers watched has been banned from the road.

The CCTV image issued by Suffolk police after a woman was assaulted in the Cornill area of Ipswich

Police have issued CCTV images of a man they would like to speak to after a woman was assaulted in the Cornhill.

Michael Leaberry

Police in Wales have launched an appeal to find a man wanted in connection with child sex offences, who is known to have links in Ipswich, Suffolk and Essex.

Woodbridge Thoroughfare

A fashion retailer looks set to open a new store in the heart of a Suffolk market town.

Sunset over Drinkstone - Pamela Bidwell

The sun going down over Suffolk is always a bewitching scene, with shadows cast over some of our most iconic landmarks and a warm glow burning behind.

Sports editor Mark Heath getting some wrestling and grappling lessons from wrestling and MMA coach Graham Yates.

Picture: ANTONY KELLY

I’m not sure if it’s called a ‘calf-slicer’ or a ‘calf-crusher’, writes Mark Heath. But I know this – it bloody hurts.

Many of the houses in Cromwell Street, Ipswich were due for demolition when this photograph was taken in the mid 1960s.
(Photo by Jack Keen)

Nearly 60 years ago a plan was drawn up for Ipswich to cope with the rise of the motor car by creating a dual carriageway around the town centre.

The team behind the building of the new Woolverstone Macmillan cancer centre at Ipswich Hospital celebrate reaching another milestone in the appeal. 
Jess Watkins, Kate Ashton, Sharon Austin, Mike Durrant, Joy Moulton, Jan Ingle, Ellie Ball, 
Pauline Meadows, Cheryl Thayer, Gill Heard, Helen Glenholmes and Mandy Jordan.

A brand new cancer centre opening in Ipswich soon has been boosted by a fundraising campaign which has raised more than a third of its £3.7million target in just 18 months.

The new Ipswich police headquarters from insurance company offices in Civic Drive in July 1968

In the summer of 1968 the Ipswich Police Station moved from under the Town Hall to a new building at the junction of Civic Drive and Elm Street. 
Last June work started to demolish this landmark building and the site is now being converted to a temporary surface car park.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24