Lloyds bank fined record £28m

Reports say that Lloyds Banking Group has been fined £28m due to “serious failings” related to bonus schemes for sales staff.

The Financial Conduct Authority (FCA) has said that it was the largest fine imposed for retail conduct failings. The bonus scheme in question put sales staff under immense pressure to hit targets or risk being demoted, according to the FCA.

FCA Director Tracey McDermott stated that “The findings do not make pleasant reading, in one instance, an adviser sold protection products to himself, his wife and a colleague to prevent himself from being demoted,”.

Reports also suggest that the failings affected branches of Lloyds TSB, Bank of Scotland and Halifax. The FCA have quoted that Lloyds and Bank of Scotland has made “substantial changes”.

Ms McDermott went on to say “customers have a right to expect better from our leading financial institutions and we expect firms to put customers first – but firms will never be able to do this if they incentivise their staff to do the opposite”.

The firms have agreed to review their sales of investment products by financial advisers and “pay redress where unsuitable sales took place”.