Sector News - December 2013

Sector News - December 2013

Banking and Financial Services

RBS finance director quits after 10 weeks in the job

Royal Bank of Scotland’s newly-appointed finance director, Nathan Bostock, has resigned after just 10 weeks in the job, throwing the bank into fresh turmoil following recent criticism over its IT systems failure. Mr Bostock is understood to have quit to become deputy chief executive of the UK arm of Spanish bank Santander, fuelling expectations that a flotation is back on the agenda. Mr Bostock is also expected to take up the position of chief risk officer at Santander.

Lloyds fined over “sell or be demoted” incentive schemes

The Financial Conduct Authority (FCA) has fined Lloyds Banking Group a record £28m after it was revealed it had created a culture of mis-selling by rewarding staff for selling thousands of products, including ISAs and income protection products, to customers whether they needed them or not. The incentive schemes put so much pressure on staff across Lloyds, Bank of Scotland and Halifax that many even bought products themselves in order to avoid demotion. The FCA said the record fine was levied because Lloyds had previously been warned by the former regulator, the Financial Services Authority, about the use of poorly managed incentive schemes.

Tesco on recruitment drive ahead of current account launch

Tesco Bank is to hire 300 staff ahead of the forthcoming launch of its first range of current accounts in a move that will see Britain’s largest retailer go head-to-head with high street banks. The jobs will be located in Glasgow and Edinburgh, and represent an increase in the bank’s total headcount of around 8pc, taking staff numbers to about 4,000.

Construction and Property

Foxtons promoted to FTSE 250

London’s notoriously aggressive estate agents, Foxtons, is set to join the ranks of Britain’s leading companies following its promotion to the FTSE 250 index. The firm floated in September at 230p, giving it a value of £649m. The market value has since risen to £830m. Foxton’s trading statement for last month indicated

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