Bankers should be licensed by professional body says Panel

Mike Dailly, giving evidence for the Financial Services Consumer Panel at today’s Parliamentary hearing into Banking Standards has called for bankers to be licensed by a professional body.

The Panel condemned the culture of the UK banking industry and called for a mandatory and independent professional standards body for bankers. The Panel believes that unprecedented mis-selling scandals, unfair bank charges and poor complaints handling are symptoms of a deep-rooted cultural problems as well as a lack of competition in the banking system.

Mike Dailly, Consumer Panel Working Group Chair commented:

“Bankers need to have the same high professional standards as doctors and solicitors. They need to be licensed by a mandatory professional body so that there is credible deterrence for unacceptable behaviour and risk taking.

Bank behaviour resembles a Tale of Two Cities. Sales customers get a Rolls Royce service. But those making complaints are passed from pillar to post. It is no longer acceptable to treat customers so poorly and nothing short of a revolution in attitudes to customers and behaviour is required.

For too long bankers have enjoyed great power without having to take responsibility for their actions. No other profession has been allowed such a stranglehold on the economy and peoples lives without a code of ethical standards. Banking should be a profession where individuals know that if they fail to observe the highest standards of professional conduct they will be struck off. ”

Notes to editors
 

1. The Consumer Panel’s response to the Parliamentary Commission on Banking Standards can be found here[1]
2. Biographical details for Mike Dailly including photographs can be found here[2]
3. Article 24 of IMD2
4. The Consumer Panel is a statutory body under the Financial Services and Markets Act 2000 and 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.
5. 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.
6. 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[3].
7. Panel members are appointed to serve a maximum of two terms of three years.