A MIS-SELLING scandal involving more than 2,000 vulnerable elderly people has prompted HSBC to reverse some bonus payments.
The bank’s NHFA subsidiary, previously known as Nursing Home Fees Agency, advised 2,485 customers with an average age of 83 to buy into five-year bonds to fund their care, even though many were likely to die before the investment term was up.
Around nine out of 10 of these customers, who invested an average of £115,000, were deemed ‘unsuitable’ for the product by an independent review.
The FSA in December slapped the bank with a £10.5m fine while it is expected to pay out £29.3m in compensation, bringing the total cost to about £40m.
HSBC said it had ‘clawed back’ some of the bonuses from staff after ‘inappropriate advice’ given by advisers of NHFA.