The Financial Services Authority (FSA) has fined Spanish bank Santander 1.5 million pounds for failing to clarify a compensation procedure on some of its products.
The FSA said Monday that the Santander fine related to failing to confirm under which circumstances its structured products would be covered by the Financial Services Compensation Scheme (FSCS).
The FSA said Santander had sold around 2.7 billion pounds worth of structured products - which are often complex savings products - between 2008 and the start of 2010 but had not adequately informed customers over the extent to which they could be compensated on them.
Considering that sales of these products took place between 2008 and 2009, a time of financial uncertainty, Santander should have moved more quickly to confirm under which circumstances FSCS cover would be available, Tracey McDermott, acting director of enforcement and financial crime at the FSA, said in a statement.
(Reporting by Sudip Kar-Gupta; Editing by David Jones)