The Financial Services Consumer Panel has welcomed Martin Wheatley’s drive to ensure that all firms have a culture that puts their customers first.

The managing director of the FSA and CEO designate of the Financial Conduct Authority (FCA) wants to shift the industry’s perception of customers, to think of them as people to serve, rather than people to sell to.

The Panel has backed this call, but added that it was “a great pity that it has taken the FSA so long to act to stamp out this disgraceful phenomenon.”

“We welcome the publication of the FSA’s guidance consultation and the regulator’s commitment to action,’ said Adam Phillips (pictured), Consumer Panel chair.

“However, the FSA has been slow to respond. Consumers continue to suffer from inappropriate pay and bonus practices in banks and other financial institutions. Incentives that encourage client service staff to make a profit at the expense of the customer need to be removed now.

“The regulator has made a commitment to change the industry’s behaviour. We hope that this time the industry will get the message and not try to find a way to get around the rules as they have done in the past.”