FCA fines Lloyds record £28m over sales incentives failings

The Financial Conduct Authority (FCA) has fined Lloyds Banking Group a record £28m "for serious failings" relating to its sales incentives.

This is the largest ever fine imposed by the FCA, or its predecessor the Financial Services Authority (FSA), for retail conduct failings. The failings affected branches of Lloyds TSB, Bank of Scotland and Halifax (which is part of Bank of Scotland). The FCA said 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, the ...