Reuters: Regulatory News: UK watchdog tells banks to change sales rewards

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UK watchdog tells banks to change sales rewards Sep 5th 2012, 06:38 LONDON, Sept 5 | Wed Sep 5, 2012 2:38am EDT LONDON, Sept 5 (Reuters) - Britain's banks are rewarding sales staff in ways that encourage mis-selling of financial products and new rules may be needed to protect consumers, the Financial Services Authority said on Wednesday. FSA Managing Director Martin Wheatley said that cultural change was needed at firms so they no longer just see customers as "someone to sell to" rather than to serve. Wheatley said in a speech to be presented at a Reuters Newsmaker event later on Wednesday that firms must change the way their incentive schemes for sales teams are structured and signalled a tougher regulatory approach may be taken. "The introduction of new rules is also being considered to make certain that this new, fairer, approach is hard-wired into the way firms do business, and enforceable if they disregard them," Wheatley said. UK consumers have suffered 20 years or more of mis-selling scandals, from pensions to home loans and product insurance.

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