Lloyds fine uncovered: Threat of the axe that pushed advisers to their limit

Lloyds Banking Group has been hit with a record fine by the Financial Conduct Authority (FCA) for retail conduct failings - related to serious flaws in the controls over sales incentive schemes - of over £28m. But what went so wrong?

Advisers under pressure Variable salaries, bonus thresholds and an advanced payment option that could lead to bonus deficits if sales targets were not met, all led advisers to hard sell products to keep - and importantly not lose - financial rewards. Eyes on the prize Advisers who met sales targets qualified for substantial salary rises and bonus payments, while advisers who did not faced salary reductions and demotions. They were able to access details of their performance against sales targets on a daily basis. The FCA concluded that there was therefore a "significant risk" that...