Benchmark survey and Lloyds/Bank of Scotland fine underline need for bonus scrutiny
£28 million penalty for poor incentives – but op risk still largely excluded from pay policies, survey finds
Early results from a survey conducted by Operational Risk & Regulation underline the need for operational risk managers to pay more attention to bank compensation schemes.
Poorly designed bonus plans for retail sales staff at UK banks Lloyds TSB and Bank of Scotland led to a £28,038,800 fine for the banks from the UK regulator, the Financial Conduct Authority – the largest fine ever imposed in the UK for retail misconduct. Lloyds, now de-merged from TSB, and Bank of Scotland are both part of
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