Lloyds Banking Group has been fined £28m for "serious failings" in relation to bonus schemes for sales staff.
Tracey McDermott, the FCA’s director of enforcement and financial crime, said:
'Customers have a right to expect better from our leading financial institutions and we expect firms to put customers first – but firms will never be able to do this if they incentivise their staff to do the opposite.'
'Because there have been numerous warnings to the industry about the importance of managing incentives schemes, and because Lloyds TSB had been fined in 2003 for unsuitable sales of bonds, we have increased the fine by ten per cent.'
Which? agrees that it is right that in this case the Financial Conduct Authority is taking strong action by imposing their largest fine. This should send a clear message to the banking industry that mis-selling won’t be tolerated and that customers, not sales, must come first.
Our executive director, Richard Lloyd said: 'We now need to see the new professional banking standards body deliver a big change in banking culture across the industry, so that front line staff and their managers are not incentivised to sell products that customers don’t want or need.'
The Financial Services Authority (FSA) and US regulators have fined RBS £390m for misconduct relating to the London Interbank Offered Rate (LIBOR). Is this a sign of a Big Change in banking?
The Financial Services Authority (FCA) has fined CPP, the credit card insurer, £10.5 million for the wide-spread mis-selling of insurance products. We're pleased to see a small win for customers, not bankers.