A day of shame for British banks: Watchdog accuses them of gambling your nest eggs

High Street banks will today be accused of gambling the hard earned savings of the vulnerable by selling thousands of customers risky investment plans.
In another day of shame for the industry, the Financial Services Authority will publish a devastating dossier exposing how salesmen gave poor and misleading advice which put customer nest eggs at risk.
It is the latest damaging revelation as they desperately try to restore their reputations in the wake of the interest rate rigging scandal.

 

Exposed: The Financial Services Authority will publish a devastating dossier exposing how banks gave poor and misleading advice which put customer nest eggs at risk

At least one major bank faces fines totalling millions of pounds and compensation payouts after being referred to the City watchdog’s serious investigations unit.
The findings are the result of a secret probe in which investigators masqueraded as ordinary members of the public to uncover the way sales staff at banks and building societies were giving advice.
In a large number of cases, salesmen recommended investments that were far more risky than the customer should have been offered.

 

This can include directing people who cannot afford to lose any money into  shares or other products with similar dangers.
The FSA is expected to say there was a serious risk of mis-selling.
In December, the City watchdog privately issued a set of demands and called for drastic improvements from the banks.
Although it is not expected to name the worst offenders, a number of big names have already made changes to their sales staff.

 

Spanish-owned Santander suspended its 800 investment advisers in December. Many have been sent on an ¿intensive¿ retraining programme

On December 7, Spanish-owned Santander suspended its 800 investment advisers. Many have been sent on an ‘intensive’ retraining programme.
These salesmen are scheduled to have crunch talks with the bank in Birmingham today. Santander refused to confirm whether it had been warned by the FSA.
Justin Modray, founder of advice website Candid Money, says: ‘Banks have long been among the worst culprits of giving bad financial advice.
‘All too often advisers are under intense pressure from bank bosses to sell profitable products, with scant regard for whether they are suitable for customer.
'Every time these incidents come to light the banks make noise about improving standards and procedures, but it’s clear very little ever changes.’
The probe is the latest effort by the City watchdog to stamp out shoddy practice.

 

In December 2011, HSBC was fined £10.5million after thousands of frail elderly people were lured into gambling their life savings