FCA announcement regarding the promotion of Structured Deposit accounts (Update)
10 September, 2014
Our regulator, the Financial Conduct Authority (FCA), has announced that they have fined Credit Suisse International and Yorkshire Building Society Group for producing unclear and misleading promotional material for a range of Structured Deposit accounts.
This follows an investigation by the FCA into certain Structured Deposit accounts provided by Credit Suisse International and sold by a number of firms including the Yorkshire Building Society Group through its Yorkshire, Chelsea and Barnsley Building Society brands. The affected accounts were sold to our customers between 14 September 2009 and 5 April 2012. The FCA found that the promotional material for some of these accounts during this period did not fully explain the low probability of achieving the potential maximum returns stated.
A Structured Deposit is a term used to describe an account which links the saver's return on their deposit to the performance of an index, for example the FTSE®100 Index. The Structured Deposit accounts we offered were: the Guaranteed Capital Account (GCA), the Guaranteed Investment Account (GIA) and the Protected Capital Account (PCA). These accounts were designed and issued by Credit Suisse International, and sold through our Yorkshire, Chelsea and Barnsley Building Society brands.
Not all GCAs, GIAs or PCAs were subject to the FCA investigation. Only certain versions of FTSE®100-linked accounts (known as 'Cliquet' accounts) sold between 14 September 2009 and 5 April 2012 were included. All other GCA, GIA and PCA accounts are unaffected.
Yorkshire Building Society Group fully accepts the decision made by the FCA and we apologise to our customers. On this occasion we have fallen short of our own high standards, and of putting our customers at the heart of everything we do. We are committed to doing all we can to put this right as soon as possible and ensure a fair outcome for customers.
At Yorkshire Building Society Group, as a mutual organisation owned by our members, it is really important to us to work in our customers' interests and maintain their trust. We hope our actions in dealing with this issue will reflect our commitment to doing the right thing for our customers and treating them in a fair way, something which lies at the heart of the Society's values.
We have agreed with the FCA a process under which our affected customers will be given the option to exit their account and receive an appropriate rate of interest, or to retain their account until maturity.
We have started the process of writing to affected customers (including those who have closed their account) to explain what’s happened and to outline the options available.
If you believe you have an affected account and haven’t received a letter from us by end of September 2014, then please call our dedicated customer relations team, details listed below.
If you have any other queries about your GCA, GIA or PCA account, please call our dedicated customer relations team on:
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