HSBC pledges support for all NHFA customers - Investments - News - Moneyfacts

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HSBC pledges support for all NHFA customers

HSBC pledges support for all NHFA customers

Category: Investments

Updated: 08/12/2011
First Published: 08/12/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

HSBC has pledged to take responsibility for all NHFA customers, even those who dealt with the company before it was taken over by the bank in 2005.

The banking giant was hit with a £40 million bill earlier this week, after the Financial Services Authority found its subsidiary NHFA had been guilty of mis-selling investment products to elderly customers between 2005 and 2010.

HSBC was ordered to pay more than £10 million to the regulator and will have to pay in excess of £29 million in compensation to customers.

HSBC has already begun the process of writing to all NHFA customers from April 2004 to date, with letters to be received during the coming weeks advising them of the closure of the company.

In addition, the letters will inform customers whether they have been identified as being part of the 2,485 individuals who may have been mis-sold investment bonds.

The bank has promised that anybody who was mis-sold products by NHFA will not be left out of pocket.

"We will take responsibility for all NHFA customers - including those from before HSBC bought the company in 2005 - to ensure that this issue is entirely resolved," said Brian Robertson, chief executive of HSBC.

"I am profoundly sorry about what happened at NHFA and it is only right and proper that we stand fully behind these customers.

"Many customers will be rightly concerned that they, or indeed their relatives, might not have received appropriate advice from NHFA, so we will certainly look at each complaint individually and sympathetically."

Any customers of NHFA from before April 2004 who wish to complain should email NHFA@hsbc.com.

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