Bloomberg News

U.K. FCA to Act Against Bank Bonuses That Encourage Mis-Selling

September 05, 2012

The U.K. Financial Conduct Authority, the financial regulator that will start next year, is planning enforcement proceedings against banks with bonus plans and other incentive schemes that encourage improper sales to consumers, the agency’s chief executive designate, Martin Wheatley, said.

An initial review by U.K. authorities has found that incentive programs for bank staff “were likely to drive people to mis-sell in order to meet targets and receive a bonus, and these risks were not being properly managed,” Wheatley will say in a speech in London today, according to an e-mailed copy of his remarks.

To contact the reporter on this story: Jim Brunsden in Brussels at jbrunsden@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net


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