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Credit Suisse pays out over structured products

Credit Suisse pays out over structured products

Category: Investments

Updated: 25/10/2011
First Published: 25/10/2011

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Investors who have recently been sold a structured product by Credit Suisse UK have been told they might get their money back after regulators uncovered failings in the way the products were sold.

Credit Suisse UK has been fined £5.95 million by the Financial Services Authority (FSA) for problems relating to sales of so-called structured capital at risk products (SCARPs).

SCARPs are complex financial products that provide income to customers but also expose them to the risk that they might lose all or part of their initial capital.

Over £1 billion was invested into the products by Credit Suisse UK on behalf of customers between January 2007 and December 2009.

However, during that period, the FSA identified a number of 'serious failings' in the systems and controls in respect of those sales.

These included not properly assessing customers' attitudes to risk and failing to take reasonable care to make sure SCARPs were suitable for customers.

The concerns were identified by the FSA during a supervisory visit to the firm, which subsequently led to the regulator commencing an enforcement investigation.

Although the firm has now changed its advisory processes to rectify the problems, all purchases of such products during the period in question are being reviewed.

If a customer is found to have been advised to purchase an unsuitable product, Credit Suisse has agreed to pay them redress to ensure that they have not suffered financially as a result.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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