The Financial Conduct Authority (FCA) has fined Lloyds TSB Bank plc and Bank of Scotland plc, both part of Lloyds Banking Group (LBG), £28,038,844 for serious failings in their controls over sales incentive schemes. The failings affected branches of Lloyds TSB, Bank of Scotland and Halifax (which is part of Bank of Scotland).
This is the largest ever fine imposed by the FCA, or its predecessor the Financial Services Authority (FSA), for retail conduct failings.
The incentive schemes led to a serious risk that sales staff were put under pressure to hit targets to get a bonus or avoid being demoted, rather than focus on what consumers may need or want. In one instance an adviser sold protection products to himself, his wife and a colleague to prevent himself from being demoted.
via FCA fines Lloyds Banking Group firms a total of £28,038,844 for serious sales incentive failings – Financial Conduct Authority.
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This is the largest ever fine imposed by the FCA, or its predecessor the Financial Services Authority (FSA), for retail conduct failings.
The incentive schemes led to a serious risk that sales staff were put under pressure to hit targets to get a bonus or avoid being demoted, rather than focus on what consumers may need or want. In one instance an adviser sold protection products to himself, his wife and a colleague to prevent himself from being demoted.
via FCA fines Lloyds Banking Group firms a total of £28,038,844 for serious sales incentive failings – Financial Conduct Authority.
- The Final Notice for Lloyds TSB Bank plc and Bank of Scotland plc.lloyds-tsb-bank-and-bank-of-scotland
- The FCA has fined Lloyds TSB Bank plc £16,407,343 and Bank of Scotland plc £11,631,501, which together is £28,038,844.
- The Bank of Scotland plc sales referred to in the Final Notice were made in Halifax and Bank of Scotland branches.
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