Ms Derville Rowland:

The culture report recognises completely that all of the banks have a distance to travel to embed a true consumer focus in their practices and structures. It goes on to articulate how clear we are that in order for them to be effective and deliver the outcomes we all expect for customers, they need to have a full and comprehensive understanding of the risks their business poses to their customers and that they need to have a plan to address and mitigate these risks. Part of it will be the way they design their products, the way they incentivise their staff and/or agents to sell those products, the training people receive and the expectations set. We are clear that as the risks to consumers are understood more fully, the banks have to look closely at the approaches employed and adopted by businesses when selling to customers. That is one of the parts of the risk framework which will be scrutinised more closely, but they will be expected to know their own business model and put appropriate risk mitigation measures in place to do so. However, we will check that they do.