The City regulators recently handed out a £30.5m fine, the largest retail fine handed down to date. The FCA investigation found some common themes, that I am sure we recognise in the press coverage across the sector:-

  • A pay structure that rewarded staff for the number of products sold, irrespective of whether the customer needed it
  • Incentives for staff to close complaints, leaving a risk that these issues were not handled fairly
  • Computer problems that resulted in some customers being overcharged and being charged for duplicate cover that they did not need
  • Failure to resolve complaints

It is about “doing the right thing” My understanding is the FCA expects the industry to lead the conduct debate with a view of “demonstrate to us you do the right thing” rather than a highly descriptive approach.

Can we assume business’s that have been actively trying to “do the right thing” and can show they have the customer’s best interest in mind, will be treated more sympathetically?

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