UBS fined £9.45 million for mis-selling

Swiss banking giant UBS has been handed another big fine after it mis-sold a savings product linked to the bailed-out insurer AIG.

In addition to the £9.45 million penalty from the Financial Services Authority (FSA), the bank will also have to pay compensation of around £10 million to the consumers who were left exposed by the suspension of the AIG fund.

UBS was handed another fine today after it mis-sold a savings product linked to AIG. Credit: John Stillwell/PA Wire

The FSA said the bank had not understood the product it was selling, failed to recommend it to the right customers and did not take effective action when the financial crisis struck.

Tracey McDermott, the FSA's director of enforcement and financial crime, said UBS has "paid the price for its failures".