FSA to end aggressive bank sales structures

Financial Conduct Authority chief executive designate Martin Wheatley is set to announce plans to crackdown on incentive schemes used by banks, building societies and insurers.

Giving his first speech to the City tomorrow, Wheatley will announce plans to toughen up on certain sales incentive schemes the regulator believes are unfair to consumers.

The FSA will publish a report based on a year-long investigation into staff reward schemes used by 20 major financial services firms.

Advisers have been calling for Wheatley to stamp his authority on the industry by putting an end to the aggressive incentive schemes used by certain firms which are unlikely to be stopped by the RDR.

The FSA wants firms to move away from structures which reward staff for the number of products sold to ones that reward staff for doing what is best for the customer.

The FSA signalled it was ready to take action against some schemes as part of its retail conduct risk outlook in March.