HSBC accepted a $16.4 million fine by British authorities to settle charges it sold inappropriate financial products to elderly customers - the largest penalty related to a retail product.  The HSBC settlement focuses on NHFA Limited, a subsidiary of HSBC, which advised nearly 2,500 clients to invest in asset-backed investments between 2005 and 2010 to finance their long-term care costs. The financial products were sold to individuals who were entering or were already in nursing homes. The customers, whose average age was 83, were reliant on the investments to pay for their retirements, the Financial Services Authority said in a statement.

“The advice and sales were unsuitable because in a number of cases the individual’s life expectancy was below the recommended five-year investment period.  As a result, customers with shorter life expectancies had to make withdrawals from these investments sooner than is recommended.”