The Treasury Select Committee (TSC) has urged the Financial Conduct Authority (FCA) to crack down on banks’ sales-based incentive practices.
Andrew Tyrie, chairman of the committee, has written to Martin Wheatley, chief executive of the FCA, pushing the regulator for a ‘deep cultural change’ on how banks pay branch staff.
Tyrie’s letter was prompted by the £28 million fine handed out to Lloyds Banking Group in December 2013 for failings in its sales practices.
Tyrie (pictured) said that the FCA had to date shown ‘little’ enthusiasm for taking action for such change.
‘Following the record fine levied against Lloyds, it should reconsider. Unless such issues are addressed now, the risk of conduct failure at some point in the future can only increase,’ he said.
The letter was written ahead of an appearance by Wheatley and FCA chairman John Griffiths-Jones in front of the Treasury Select Committee tomorrow where they will be questioned over the regulator’s work so far.