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“Currently,” said UNI Finance’s Oliver Roethig at the hearing on 3 September, “finance employees are pushed towards selling products irrespective of whether a client need or want them. Employees don’t like this, but they don’t have a choice.”



“For the trade unions, it is essential that legislation does not only provide rights for the clients. The law must ensure that internal business operations of banks actually advance these rights rather than cancel them out.”



In its submission, UNI Finance stresses five points:



1. Incentive structures for employees in sales and advice functions should encourage good customer services and qualified advice and not only sale of products. Remuneration structures should not be linked to individual sales targets.



2. Prudent supervision should oversee that incentive structures for employees sales and advice functions are appropriate, customer-oriented and risk conscious. Authorities should be able to penalise inappropriate practice.



3. There should be structured dialogue between unions in the finance sector and supervision authorities at all levels to address this issue and other internal practices affecting companies’ risk management and the stability of the financial system.



4. Charters on responsible sale of financial products should be developed by each financial institution and be agreed between management, unions and other stakeholders.



5. Measures should be taken to ensure sufficient and continuous training of employees to keep up with the rapid innovation and increasing complexity of the financial products they sell. Employees must have a full understanding of the products they sell, in particular in terms of the implications for customers.



For the submission, see "Related Articles".