Hard sell
Precipice bonds were a risky buy. As buyers should have noticed
NICE money it looked, back in 2000. Returns on bank and building-society deposits had slumped, but solid-sounding “bonds” and “plans” offered up to five years of income at 10% or more. Many retired people were tempted; in all, the Financial Services Authority (FSA) reckons that 250,000 buyers put £5 billion into such schemes. Few will see much back. The FSA has already fined Lloyds TSB Bank £1.9m for “mis-selling” and told it to pay £98m in compensation. More fines loom.
This article appeared in the Britain section of the print edition under the headline “Hard sell”
From the November 1st 2003 edition
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