Lloyds Banking Group Face £28 Million Fine in Relation to Sales Incentive Controls

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On December 11, the FCA published a final notice to Lloyds Banking Group in which it was fined a record GBP £28 million. The fine was imposed for “serious failings” in its sales practices, the largest UK regulatory penalty for a retail banking misdemeanor. The FCA was particularly critical of “seriously flawed” sales practices and bonus structures in place between January 2010 and March 2012 that involved sales people being potentially demoted, with a potential cut in salary of up to 50 percent, if they failed to hit targets. Final Notice.

 

Topics:  Compliance, FCA, Fines, Foreign Banks, Lloyds Banking Group, Penalties, UK

Published In: Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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