The FCA has investigated two more firms in connection with sales incentives schemes, in addition to its £28m fine against Lloyds Banking Group last year.
Speaking to the Treasury select committee yesterday, FCA chief executive Martin Wheatley said tackling incentives was a priority.
Last December Lloyds was fined £28m for schemes that included a “grand in your hand” competition and “champagne bonuses” – an extra bonus for themselves and their team – if they achieved 100 per cent of their sales targets over a three-month period.
The fine came after a year-long regulatory review of incentive schemes which started in 2012.
Wheatley told the TSC yesterday: “We found very, very poor practice, frankly, across the whole sector. We sent some strong messages to the industry.
“We took forward one enforcement case, which was Lloyds. There are two other investigations with sales incentives as part of the case.”
Wheatley says the FCA will consider whether a further crackdown is needed when it publishes the results of its thematic review shortly.
He said: “All major firms have redesigned their systems substantially. Some of them to take out sales based incentives entirely, some to reduce the proportion based on sales. As a result we will look at whether we need to do more work.”
Ahead of yesterday’s hearing, TSC chair Andrew Tyrie wrote to the FCA saying it needs to do more to clamp down on sales incentives schemes operated by banks.