The FCA has dropped two more banking probes after shelving a major review into industry culture

Jessica Morris
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Osborne wants to reach a "new settlement" with the City (Source: Getty)

Britain's financial watchdog has reportedly dropped two more probes into the banking industry, in the wake of its u-turn on a major review into the culture, pay and behaviour of those who work in the industry.

The Financial Conduct Authority (FCA) has scrapped a study into the way lenders incentivise their staff to sell financial products, and will also shelve an investigation of how insurers use customer information, The Times reported.

The FCA could not be reached for comment outside normal business hours.

Six months after FCA chief executive Martin Wheatley was unceremoniously ousted by chancellor George Osborne who wants to reach a "new settlement" with the City. Wheatley had been regarded as something of an adversary to the financial industry, despite saying he did not want to "put heads on sticks" or go "scalp hunting".

Read more: George Osborne ousts Martin Wheatley from FCA

It comes a day after the financial watchdog dropped a wide-reaching look at banking practices in favour of looking at individual firms. At the time, it said this would better help deliver "cultural change".

"There is currently extensive ongoing work in this area within firms and externally," it said yesterday.

"We have decided that the best way to support these efforts is to engage individually with firms to encourage their delivery of cultural change as well as supporting the other initiatives outside the FCA."

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