Bringing home the bacon
One firm was shown by the FSA to have its heart in the right place when it came to penalising staff for poor practice but failed to go the whole hog to reduce potential customer risks.
The firm had both a monthly and quarterly bonus for sales staff but when the firm’s file checking showed up failures including poor advice, staff were penalised by losing their quarterly bonus.
However, they were still eligible to receive the heftier monthly bonuses which could go up to more than £7,000.
The FSA noted: ‘Since staff could still earn significant bonuses while giving poor quality advice, this scheme was unlikely to have the right impact on staff behaviour.’