Lloyds fined record £28m for pushing advisers to sell unsuitable insurance and investments and threatening 50% pay cuts if they missed sales targets
Mail Online - Ed Monk, 12/11/13
Targets: Lloyds Banking Group paid staff even when sales were inappropriate.
State-backed Lloyds Banking Group has been fined a record £28million after regulators found its incentive scheme rewarded advisers for selling customers unsuitable investments and insurance, while those missing targets stood to lose almost 50 per cent of their salary.
The Financial Conduct Authority fine - the largest dished out for consumer-related failings - was increased by 10 per cent because it followed numerous warnings over several years that poorly designed incentive schemes risked leading to mis-selling. This is Money had previously revealed the staff incentives paid by Lloyds and other banks, warning of the risk of mis-selling.