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Yorkshire Building Society and Credit Suisse were fined a total of £3.8 million yesterday for conning thousands of customers into believing their investments had a good chance of achieving a maximum return.
The Financial Conduct Authority (FCA) found the two firms were “misleading” investors.
Regulators said the chance of getting the minimum return was 40-50 per cent but there was almost no chance of getting the maximum return.
This top figure was given “undue prominence” in both companies’ brochures, the FCA said.
Almost 84,000 people ploughed £797m into the investment scheme known as Cliquet, designed by Credit Suisse and sold through the Yorkshire.
About 56,000 of the building society’s customers invested a total of nearly £546m — most of them aged over 45 and a third over 65.
Credit Suisse was fined £2.4m and the Yorkshire £1.4m.
FCA enforcement and financial crime director Tracey McDermott said: “Financial promotions are often the primary source of information for consumers and in this case Credit Suisse and Yorkshire Building Society let their customers down badly.”
