BRIEF-FCA fines Credit Suisse, Yorkshire Building Society for financial promotions failures

June 16 Mon Jun 16, 2014 5:24am EDT

June 16 (Reuters) - Financial Conduct Authority (FCA):

* Financial Conduct Authority fines Credit Suisse and Yorkshire Building Society for financial promotions failures

* If CSI's processes had included such a review, this may have resulted in problems with product brochure being remedied earlier (corrects source to FCA not Credit Suisse)

* CSI was fined £2,398,100 and YBS's fine was £1,429,000.

* CSI and YBS knew that chances of receiving maximum return were close to zero but they nevertheless highlighted this as a key promotional feature of product. This was unacceptable."

* Today's fines are first time that FCA has taken action against both manufacturer of a product and its distributor simultaneously.

* Both firms agreed to settle at an early stage of FCA's investigation and therefore received a 30 pct settlement discount

* Maximum return figure was given undue prominence in both CSI's product brochures for cliquet product

* FCA found that CSI failed to have a procedure in place for a complete review of their long running promotions on a periodic basis