NEW YORK ( TheStreet) -- HSBC ( HBC) was hit with record fines for selling unsuitable investment products to the elderly.

The fine of 10.5 million pounds, or $16.4 million, is the largest in the history of the Financial Services Authority (FSA), the U.K.'s top financial services regulator. HSBC will also have to pay 29.3 million pounds, or about $46 million, in compensation to 2,485 of its customers.

Through a subsidiary called NHFA, HSBC advised customers between 2005 and 2010 to buy asset-backed bonds to pay for long-term care. The investments typically had a minimum five-year time horizon and the average customer age was 83 "and they therefore had limited means or opportunity to make up any financial loss resulting from an unsuitable sale," stated an FSA press release.

-- Written by Dan Freed in New York. Follow this writer on Twitter.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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