FCA fines RBS and NatWest
The Financial Conduct Authority (FCA) has today fined The Royal Bank of Scotland and NatWest £14,474,600 for serious failings in their advised mortgage sales business.
The firms failed to ensure that advice given to customers was suitable. The issues with the sales process included affordability assessments failing to consider the full extent of a customer’s budget when making a recommendation, failing to advise customers who were looking to consolidate debt properly and not advising customers what mortgage term was appropriate for them.
The firms did not adequately address the failings when concerns were raised about the quality of the advice process by the FCA’s predecessor the Financial Services Authority (FSA). This resulted in customers being placed at risk for an even longer period.
Tracey McDermott, director of enforcement and financial crime at the FCA said:
“Taking out a mortgage is one of the most important financial decisions we can make. Poor advice could cost someone their home so it’s vital that the advice process is fit for purpose. Both firms failed to ensure that their customers were getting the best advice for them”.
The firms agreed to settle at an early stage and therefore qualified for a 30% stage one discount. Were it not for this discount the fine would have been £20,678,000.
Source: FCA
