New bank watchdog to monitor profits as well as their conduct

Tim Wallace
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BANKS’ will come under extra scrutiny in future if they are seen to make large profits on potentially dodgy products, under new proposals for the incoming Financial Conduct Authority (FCA) that will be unveiled later this week.

The watchdog will monitor behaviour in financial institutions, as well as how products and services work for the consumer.

Its boss Martin Wheatley has already pledged to get tough on bad products, telling banks he will “shoot first and ask questions later,” when assessing suspect services.

This week’s approach document will give extra detail on the FCA’s planned mode of operations.

As well as monitoring customer service and selling practices, the watchdog will also look at profits made on products under investigation, City A.M. understands.

“The aim is to get the industry to really look at what they are trying to get out of their customers,” said a source. “Are they looking to promote a service that the customer needs? Or are they just looking for any way to make a sale?”