Consumer Panel calls for personal PPI fines for senior bankers
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Bank chiefs should be hit with personal fines if their firms are found to have mis-sold Payment Protection Insurance, according to the Financial Services Consumer Panel.
Speaking in an interview with the Observer this weekend, chairman Adam Phillips (pictured) called for senior banking figures to be fined by the FSA.
Land of Leather chief executive Paul Briant was fined £14,000 for failing to properly oversee PPI sales but senior staff at Alliance & Leicester, whose firm received a £7m PPI fine, were not hit with any personal penalties.
Phillips old the Observer: “I want to see more senior people, the heads of UK retail banking, sanctioned for mis-selling PPI. At the moment the most senior person [to have been sanctioned] is the chief executive of Land of Leather.”
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Readers' comments (4)
Phil Castle | 26 Oct 2009 8:56 am
I completely agree with what Mr Phillips has said here. People (senior managers and directors) need to be held personally responsible to a greater extent, but that ALSO applies to the directors and managers at the FSA, FOS and FSCS as well as politicians if they are found to have pursued a course of action which is subsequently found to be illegal. Falling on ones golden sword should not be an option.
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Anonymous | 26 Oct 2009 10:49 am
At last...someone talking some sense.
There is currently no incentive for senior management to stop mis-selling - in fact, quite the opposite.
If a major bank (or other institution) makes £10 profit from the mis-selling and is hit by a £5 Million fine; the advisor gets his commission and the senior managers share bonuses from the profits then I am sure they will all be happy for the practice to continue.
If the Bank's penalty/fine was LARGER that the total profits from PPIs; the consultant had to pay back the commission + Interest AND senior management received heavy personal fines (outweighing the bonus benefit recived)......then I think we may see a serious attempt to put their house in order.
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The Mystery Shopper for IFAs | 26 Oct 2009 2:16 pm
FSA staff should also be fined for mistakes, overpayment of unjustified bonuses, made to take exams (unpaid leave until they pass) etc. How may times have we seen big payouts to failed F-Pack staff. It's a joke!
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Anonymous | 27 Oct 2009 7:09 am
agree they should get fines and as the others say they should be substantial, this is insurance not selling jumpers, they ripped people of in many cases. Personaly I think some of the behaviour of these banks has beeen actual criminal fraud and the FSA FOS should be considering reporting it as such.
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