Britain's banks are facing a clampdown on commission-based sales that have encouraged mis-selling of financial products going back two decades, the City regulator has said.
Martin Wheatley, managing director at the Financial Services Authority (FSA), said that sales of all financial products, not just investment-related sales, should be commission free except in certain restricted circumstances. He said "poorly designed incentive schemes" often result in customers being sold products they do not need or cannot use, while boosting the earnings of the sales person. “Why is it that every time I walk into the bank to do something simple, like pay my credit card bill, the person behind the counter asks me if I would like to extend my credit, take out more insurance or look at their competitive mortgage rates?...Read more HERE