UK watchdog fines Credit Suisse, Yorkshire Building Society
LONDON, June 16
LONDON, June 16 (Reuters) - Britain's Financial Conduct Authority has fined Credit Suisse International and Yorkshire Building Society for failing to ensure that financial promotions for a product were clear, fair and not misleading.
The FCA said in a statement on Monday it fined Credit Suisse International 2.4 million pounds ($4 million) and Yorkshire Building Society 1.4 million pounds.
The watchdog said the Cliquet product was designed by the Swiss bank to provide capital protection and a guaranteed minimum return, with the apparent potential for significantly more if Britain's FTSE 100 share index performed consistently well.
However, the probability of achieving only the minimum return was 40-50 percent, and the probability of achieving the maximum return was close to zero percent, the FCA said. The potential maximum return on the product was marketed as a key promotional feature, the FCA said. ($1 = 0.5956 British Pounds) (Reporting by Huw Jones, editing by Chris Vellacott)
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