Treasury select committee chair Andrew Tyrie has written to the FCA saying the regulator needs to do more to clamp down on sales incentive schemes operated by banks.
The Financial Times reports Tyrie has written to FCA chief executive Martin Wheatley calling for “deep cultural change” in the way banks pay branch staff.
In the letter, Tyrie says: “Incentives have been deeply misaligned for significant numbers of frontline staff, not just highly remunerated traders or the most senior executives.
“So far, the FCA has shown little enthusiasm for taking such action. 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.”
Lloyds Banking Group was fined over £28m in December over “serious failings” related to its sales incentives schemes, in what is the largest ever fine imposed by the regulator for retail conduct failings.
Wheatley and FCA chairman John Griffith-Jones are appearing before the TSC tomorrow at 10am.