Bankers must change their culture to give consumers a fair deal

First published: Last updated: 12/03/2013

12 March 2013

Mike Dailly, Consumer Panel Working Group Chair, speaking at today’s BBA Complaints Seminar has called on bankers to embrace cultural change. The Financial Services Consumer Panel has highlighted a lack of professional ethics and blamed an ethical failure for many of the recent banking scandals.

The Panel has called for the adoption of a new set of professional standards for bankers. There is also a need for straightforward outcome products that consumers can trust.

Mike Dailly, Consumer Panel Working Group Chair commented:
“Many of financial scandals and problems both in the UK and abroad can be traced back to a lack of embedded professional ethics in the industry. Banking needs to be reformed and bankers need to respond to this ethical failure with a new set of professional ethics.

Consumers need the right products at the right price. This should mean an end to inducements related to product choice and sales volumes. It should also be accompanied by firms offering straightforward outcome products that do what they say on the tin.

The FCA with its new consumer protection and competition duties will be an important driver for progressive change. Regulation alone will not be enough. Only organisational leadership in the industry coupled with a commitment to cultural change and the adoption of a new set of consumer values will be key to restoring trust.”

 

Notes to editors

  1. Mike Dailly’s speech is available on our website
  2. Biographical details for Mike Dailly and photographs in a range of resolutions are available on our website: http://www.fs-cp.org.uk/about_us/mike_dailly.shtml
  3. The Consumer Panel is a statutory body under the Financial Services Act 2012 and Financial Services and Markets Act 2000. It was initially established by the Financial Services Authority in December 1998. The Panel advises the FSA on the interests and concerns of consumers and reports on the FSA's performance in meeting its objectives.
  4. The Panel’s membership is drawn from a broad range of backgrounds with expertise including market research, law, financial services industry, financial inclusion, European Regulation, financial regulation, consumer advice, campaigning, communications, compliance and later-life issues.
  5. The emphasis of the Panel's work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA's remit. More information about the Panel's work is available on our website.
  6. Panel members are appointed to serve a maximum of two terms of three years.