UK’s ninth largest building society has been fined £1.4 million and it has agreed to pay £51 million to its customers after there was a discrepancy of mis-sold investment products.

"N&P failed in its basic duty to provide suitable advice to its customers, despite an internal compliance report pointing out that there were problems as early as 2007. Firms cannot treat customers fairly unless they pay attention to their financial circumstances and attitude to risk when they make recommendations", said Tracey McDermott, the FSA's acting Enforcement Director.

The Financial Services Authority has fined them because of their poor client advice on the products which has earlier been failed to be sold by Keydata Company.

Norwich & Peterborough have also agreed to pay 51 million pounds to the customers in relation with this discrepancy.

Reports have claimed that over the period of 3 years, Norwich and Peterborough have advised over 3,200 clients to invest in the life-settlement products of Keydata.

The company have failed to give proper advice to its customers regarding the possible threat of a huge loss from these investments.

There were reports which claimed that last year Ford asked the British government to start an investigation regarding the collapse of the company.