
Sesame fined £330,000 by FSA for scarps failures
LOSSES & LAWSUITS
The problems with Sesame's complaints handling were found as part of the FSA's thematic review of SCARPs during March and August 2004. The FSA discovered that Sesame incorrectly rejected complaints from approximately 350 customers between March 2003 and October 2004, resulting in a loss of £5.9 million for the customers involved. The complaints related to sales made by Sesame's legacy networks.
After the FSA identified the problems, Sesame took action to ensure all affected customers were compensated, and contracted external advisers to review its SCARPs complaint handling procedures and train its staff. If the firm had failed to co-operate or provide adequate commitment to mitigation and remedial action, the penalty would have been substantially higher, the FSA confirmed.
"Sesame has no excuse for complaints handling failures of this kind, not least because the FSA had already issued a number of publications concerning both SCARPs and complaints handling. The failings we found highlight the need for firms to implement and maintain robust complaints handling procedures and to train staff adequately," said William Amos, head of retail enforcement at the FSA.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Grim repo warning spotlights BNP Paribas booking model
Federal regulators may be targeting French bank’s Paris-based book of US Treasuries
We’re all outliers now: Europe’s unflattering IRRBB test
Banks, fearing overreaction from supervisors, urge European Commission to reject NII-based assessment
SEC targets ‘dark magic’ in fixed-income pricing with Bloomberg fine
US regulator is going after pricing vendors that deviate from their published methodologies
Alameda’s mystery bank stake reignites Fed deposit debate
Crypto challenger Custodia accuses regulator of unlevel playing field over master accounts
More EU banks will fail new IRRBB test as rates push upwards
Half of all EU banks could cross outlier threshold for new test of net interest income
Finra head recognises ‘challenges’ for bond transparency drive
Cook says regulators thinking about industry’s operational and liquidity concerns
Why central banks shouldn’t ignore stablecoins
Rapid growth of stablecoins could impair monetary policy transmission
Hedge funds doubt tall tales around UK short-selling review
FCA has never used powers to ban short-selling, but reporting tweaks would be welcome