Menu
05/09/2012
FSA Call For Clampdown On Sales Commission
A call has been made for a clampdown on commission made from the sale of insurance, loans and bank accounts, the UKs financial watchdog has said.
The move comes in the wake of a series of mis-selling scandals such as payment protection insurance (PPI).
The Financial Services Authority (FSA) will not impose an outright ban on commissions, but has said it is demanding that payments be dependent on the customer benefiting, not on the volume of sales.
It is common practice for bank, building society and insurance company staff to have an incentive to sell products and policies.
This includes pushing the sales of bank accounts, mortgages and credit cards when people simply go about their daily financial business in banks.
A representative of the UK's banks said that changes were already being made, but that there was some merit to the use of commission.
"It has been too easy, for too long, for those selling or giving advice to be motivated solely by the rewards on offer to them” Martin Wheatley, FSA managing director, told the BBC.
Adding: "We have found evidence of poor practice and we are concerned that this reward culture is a significant contributor to mis-selling.
"Incentive schemes on PPI were rotten to the core and made a bad problem worse."
(H)
The move comes in the wake of a series of mis-selling scandals such as payment protection insurance (PPI).
The Financial Services Authority (FSA) will not impose an outright ban on commissions, but has said it is demanding that payments be dependent on the customer benefiting, not on the volume of sales.
It is common practice for bank, building society and insurance company staff to have an incentive to sell products and policies.
This includes pushing the sales of bank accounts, mortgages and credit cards when people simply go about their daily financial business in banks.
A representative of the UK's banks said that changes were already being made, but that there was some merit to the use of commission.
"It has been too easy, for too long, for those selling or giving advice to be motivated solely by the rewards on offer to them” Martin Wheatley, FSA managing director, told the BBC.
Adding: "We have found evidence of poor practice and we are concerned that this reward culture is a significant contributor to mis-selling.
"Incentive schemes on PPI were rotten to the core and made a bad problem worse."
(H)
Related UK National News Stories
Click here for the latest headlines.
05 May 2011
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
11 December 2013
Lloyds Bank Fined A Record £28m
Lloyds Banking Group has been fined a record £28m for "serious failings" in relation to its bonus schemes for sales staff. The Financial Conduct Authority (FCA), which issued the fine, said it is the largest fine it or the former Financial Services Authority (FSA) had imposed for retail conduct failings.
Lloyds Bank Fined A Record £28m
Lloyds Banking Group has been fined a record £28m for "serious failings" in relation to its bonus schemes for sales staff. The Financial Conduct Authority (FCA), which issued the fine, said it is the largest fine it or the former Financial Services Authority (FSA) had imposed for retail conduct failings.
07 November 2013
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
14 August 2013
Scottish Sales 'Outpace UK Sales' In July
The latest SRC-KPMG Scottish Retail Sales Monitor has revealed that Scottish sales outpaced its UK counterpart for the month of July. It is thought Andy Murray's triumph at Wimbledon, as well as the sustained period of hot weather combined to give Scotland's high streets their best performance for two years.
Scottish Sales 'Outpace UK Sales' In July
The latest SRC-KPMG Scottish Retail Sales Monitor has revealed that Scottish sales outpaced its UK counterpart for the month of July. It is thought Andy Murray's triumph at Wimbledon, as well as the sustained period of hot weather combined to give Scotland's high streets their best performance for two years.
07 December 2012
Bank Staff Still Under Pressure To Push Products
Banks continue to pressure counter staff into pushing potentially unsuitable products, despite the scandal surrounding mis-selling, Which? has said. During research carried out between October and early December, the consumer group found 65% of bank staff with sales targets said they were being placed under more pressure than ever to hit them.
Bank Staff Still Under Pressure To Push Products
Banks continue to pressure counter staff into pushing potentially unsuitable products, despite the scandal surrounding mis-selling, Which? has said. During research carried out between October and early December, the consumer group found 65% of bank staff with sales targets said they were being placed under more pressure than ever to hit them.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
