Early analysis from its cross industry review into how staff are rewarded in the sales process showed the largest banks had made significant changes to pay structures but investment and protection sales were lagging behind.
Speaking at the CML conference today Linda Woodall, director of mortgage and consumer lending at the FCA, said: “Some are moving to a more balanced approach by introducing customer-focused measures and three [banks] have removed the direct link to sales incentives for front line staff in branches and call centres.
“There is evidence that major players are increasing their testing of consumer outcomes from face-to-face sales all of which are really encouraging but more still needs to be done. There are places where less progress has been made particularly in the investment and protection sale areas.”
Remuneration will also fall within the scope of the European Mortgage Credit Directive which considers the particular need to ensure remuneration does not distort either underwriting or sales practices.
Woodall said the review is continuing across all sectors and time would tell if the industry has turned a corner.
The full findings of the review will be published in quarter one next year.
