Wednesday 21 March 2018

Nama chief led bank during mis-selling scandal

Roisin Burke

Nama's new Advisory Group boss Michael Geoghegan led banking giant HSBC while mis-selling to thousands of pensioners occurred at one of its businesses.

HSBC owned NHFA, a financial adviser that sold elderly customers five-year bonds that were unlikely to mature before they died. Many clients relied on the investments to pay for their care.

HSBC must pay a record €47m in fines and compensation in the biggest-ever ruling against a retail bank by Britain's Financial Services Authority (FSA).

The mis-selling took place between 2005 and 2010. Irish-born Mr Geoghegan was HSBC group CEO from 2006 through 2010.

While rival banking group Lloyd's is seeking a bonus claw-back from its former boss following a mis-selling fine, a return of part or all of the €4.4bn bonus assigned to Mr Geoghegan for 2010 is "not being looked at", HSBC told the Sunday Independent.

"It may be something for the future, but it is not being considered at present. Our main priority is to recompense those customers impacted by the NHFA mis-selling as quickly as possible," he said, adding that it was HSBC's British bank that identified the problems and advised the FSA.

Mr Geoghegan was last week appointed to chair the Nama Advisory Group.

Nama's spokesman declined to comment and also declined a request for comment from Mr Geoghegan on his behalf.

Sunday Indo Business

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