- The £28.04M penalty is the largest ever by the U.K.'s Financial Conduct Authority (formerly the Financial Services Authority) for retail conduct. The regulator accused Lloyds (LYG) of failing to properly manage its compensation program so financial advisors - in order to meet sales targets - were not encouraged to push products on customers they didn't really need.
- “The findings do not make pleasant reading,” says Tracey McDermott, the F.C.A.’s director of enforcement and financial crime. “Financial incentive schemes are an important indicator of what management values and a key influence on the culture of the organization, so they must be designed with the customer at the heart.”
Lloyds fined $46M over sales program
Dec 11 2013, 07:16 ET