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Tyrie calls on FCA to act over banks' sales incentives

by Jun Merrett on Feb 03, 2014 at 09:59

Tyrie calls on FCA to act over banks' sales incentives

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.

5 comments so far. Why not have your say?

JonnieB666

Feb 03, 2014 at 11:08

Horse, Bolted, Stable.

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Charles Rickards

Feb 03, 2014 at 11:37

Better late than never Andrew! I am not sure that there are many banks left with sales incentives. Should the same incentives be removed from other businesses that service the general public. How about mobile phone companies or energy comparison sites?

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Jonathan Kirby

Feb 03, 2014 at 12:27

& FCA Bonuses?

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Jonathan Kirby

Feb 03, 2014 at 13:01

Taken from FCA website:

We offer:

up to 38 days' holiday (our flexible benefits scheme lets you add to a basic 23-day allowance)

a competitive non-contributory pension scheme

an employee assistance programme

a health screening

an annual incentive bonus scheme

an interest-free season ticket loan of up to £5,000

the opportunity to apply for sponsored study

Protection for your future includes:

life assurance

private medical insurance

permanent health insurance

occupational sick pay

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Charles Rickards

Feb 03, 2014 at 13:25

Jonathan, you would expect the leading force in financial services to have a great employee package and in an ideal world all employers would offer the same. However, as you seek to point out, how is this package paid for? And again we know the answer! Good for the FCA employees that the fee payers keep on paying their fees. It does however, beg the question as to whether or not the fee payers have all relevant information disclosed to them?

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