Banks must ditch their sales-driven culture and adopt a more holistic approach to financial advice, the head of the new Financial Conduct Authority (FCA) has said.
Addressing the British Bankers' Association in London today, Martin Wheatley alluded to recent mis-selling scandals, particularly those which targeted the elderly and vulnerable.
"When our customer looks to you for investment advice, it should never be just an opportunity for your adviser to see their sales commission looking back at them rather than an actual customer with real needs," he said.
"What our customer expects is for your adviser to look at their personal circumstances, what their goals and aspirations are, and how much they're prepared to risk and then come up with something that is appropriate for them."
He added many consumers would have little investment or pension knowledge and would be "completely reliant on you".
Referring to the recent NHFA mis-selling scandal, he highlighted a case where a 94 year old sold a product with a five-year investment period and penalties for early withdrawals.
"These practices hurt the industry and damage consumer confidence," he explained.
During his speech, Wheatley,also detailed how it will protect consumers through expanded product intervention powers.
This would include the ability to ban the sale of certain types of products for 12 months without consultation.
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