Head regulator says that financial services are moving away from simplistic rewards structures


Chief regulator Martin Wheatley told an audience that he has seen signs of improvement in the UK's financial services industry.

The financial conduct authority (FCA) chief executive said early analysis suggested "three of the biggest UK banks have removed the direct link to sales in incentive arrangements for front line staff in retail branches, and call centres."

Talking to the British Bankers' Association, Wheatley said that that sales equals rewards link was "particularly strong" in domestic cases like PPI misselling.

Wheatley says industry players seem to now be "moving away from formulaic incentives to a more balanced approach. And it’s encouraging to see larger firms increasing tracking of customer outcomes in face-to-face sales."

Data released by the FCA yesterday showed that PPI complaints are now on the decline as all complaints (including PPI) dropped by 500,000 in six months.