FSA fines Santander £1.5m for structured products failings

The Financial Services Authority (FSA) has fined Santander £1.5m for failing to confirm to customers the circumstances under which its structured products would be covered by the Financial Services Compensation Scheme (FSCS).

Customers began to query the extent of FSCS cover towards the end of 2008, but it was only in January 2010 that Santander clarified the position. During this period, the bank sold approximately £2.7bn of structured products, including £1.2bn after June 2009, when it had concluded the circumstances in which its two products, Guaranteed Capital Plus and the Guaranteed Growth Plan, would be covered by the FSCS were limited. However, new customers were not informed of the limitation in FSCS cover until January 2010. The FSA said Santander has acknowledged it could have changed its prod...