Financial industry watchdog, the Financial Conduct Authority (FCA) has imposed a fine of £1.8 million for failing to treat its customers in an appropriate manner.

FCA said that the advisers at AXA Wealth Services sold £440 million of investment products without explaining the risks or assessing if the products were suitable for the customers. AXA has a total of 201 sales advisers operating out of branches of Clydesdale and Yorkshire banks besides 23 at the separate West Bromwich Building Society.

The Clydesdale Bank, which is based in Glasgow, had transferred its financial planning service to AXA in 2009. AXA had said earlier that it is shutting out its service in Clydesdale branches for reasons other than the probe by the regulators. The FCA said that the company sold 37,000 products including stocks-and-shares individual savings accounts (ISAs) and investment bonds between September 2010 and April 2012, to 26,000 customers.

Tracey McDermott, FCA director of enforcement, said, "AXA fell short of its responsibilities to its customers, many of whom were elderly, retired and financially inexperienced. Its failures resulted in an unacceptable risk of AXA selling products which were unsuitable for its customers."