Santander UK fined £12.4 million by FCA for poor advice

Reports state that the High Street bank Santander UK has been fined nearly £12.4m by the UK financial watchdog over failures in investment advice.

The Financial Conduct Authority (FCA) have said that there was a risk that Santander customers could have been given unsuitable advice.

The bank has apologised and has said that they will contact affected customers who could be in line for compensation.

Tracey McDermott, director of enforcement and financial crime at the FCA said that the bank has “let customers down badly”.

Some of the failures identified by the FCA were failure to make sure new advisers were properly trained before being allowed to give investment advice and ongoing checks to ensure that investments were suitable were not carried out for Premium Investment customers.

The bank had previously been fined by the regulator for £1.5m in February 2012 for being too slow to explain to customers whether investments were covered by the Financial Services Compensation Scheme safety net.