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Staff sales targets undermine the fight against fraud

Remuneration structures that reward sales targets with large bonuses can threaten lenders’ controls against fraud, the Financial Services Authority has warned.

The regulator’s Mortgage Fraud Thematic Review found that sales commission at certain lenders was excessive and could encourage inbranch advisers to expose their firms to fraudulent applications in the pursuit of high targets.

Speaking at the FSA’s Financial Crime Conference, Edna Young, strategy specialist for financial crime and intelligence at the FSA, told delegates that at one lender an employee was able to earn 775% of their salary in bonuses.

She says: “Lenders showed a lack of understanding that remuneration based on sales targets could encourage staff to turn a blind eye to fraudulent activity or incentivise them to commit fraud.”


New broker poaches sales boss

Ian Baker, sales manager at John Charcol, is to join Capital Private Finance, the joint venture between Countrywide and Mortgage Advice Bureau. He will join as sales director and report directly to the board. Baker has been given the task of building up a team of advisers. Capital Private Finance is due to launch in […]

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What price (more) freedoms?

George Osborne will make his last Budget speech of the current parliamentary term this week, and the early media briefings suggest that pensions will again feature heavily in that statement. So what are we able to learn from the weekend’s coverage?


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