The Financial Conduct Authority says concerns about banks’ sales incentives are at the “top of the agenda” and has refused to rule out an outright ban in the future.
Speaking to the Treasury select committee this week, FCA chairman John Griffith-Jones said he understands the way incentives can affect staff beahviour.
He said: “The objective is for the customer to be treated fairly and whether it requires a ban on incentives as opposed to moderating it, we should wait and see.
“It is absolutely at the top of our agenda. FCA chief executive Martin Whetaley did a short piece of work recently studying 22 banks’ systems and we did not like what we found.
“The first thing we must do is to understand the situation because there are different schemes in different banks. To the extent we believe they are leading to bad conduct then we will insist they are changed.”
Bloomsbury Financial Planning partner Jason Butler says: “Talk is cheap, let’s see some action. It is an enormous task to turn around a rotten culture and malevolence towards customers.”