In a recent opinion article for the Financial Times, author and former banker Philip Augar analyzes cultural shortcomings in the UK financial services sector and suggests that banks need to reform their culture practices before making the case for easing regulation.
The UK's motor finance scandal is an example of continuing cultural shortcomings, Augar argues. The Court of Appeal recently ruled that car dealers had to disclose commissions on motor loans upfront, addressing a practice previously buried in small print. This ruling exposed banks to potential compensation costs of up to £30 billion and highlighted parallels to the £50 billion payment protection insurance (PPI) mis-selling scandal.
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