FCA uncovers bank sales incentive risks for investment and protection

All the major retail banks and most medium-sized and smaller firms have made "significant" changes to their sales incentive schemes, but concerns over enticements linked to bank investment and protection sales remain, the Financial Conduct Authority (FCA) reports.

For large banks, some of the most significant reductions in incentive risks have been in branches and call centres, such as among staff who sell products such as current and packaged accounts. However, it added "some higher risk schemes still remain in other areas of banks, such as investment and protection sales". The regulator has provided an update on a thematic review of firms' sales incentive schemes, which uncovered widespread risks. The review did not include or involve advisory businesses. Things have improved considerably, it said: three banks had completely removed the di...