Analysis of the Financial Misselling Assignment

Analysis of the Financial Misselling - Assignment Example In the recent case in Barclays Company, Bob Diamond broke the ranks with Barclays after the dismissal of alleged interest rate swaps. Human error is one of the important factors leading to the misselling practices. The mistakes will be done when the financial products are sold in thousands and need emerges for addressing the mistakes and also provide proper compensation for them. Another example of financial misselling moves centers around the interest rate swaps as well as their alleged misselling to the small business. A company named Norton Accord has been also accused of financial misselling with the instance of interest rate swaps. The misselling scandal can lead the banks in costing billions. Incompetence is seen from the salespeople who are caused by the poor training as well as insufficient compliance systems. There lies a big difference between the odd mistakes from the individuals inferred from Barclays where there was insufficient knowledge for the individuals. Another maj or factor in the misspelling is that of making money. This is one of the factors which lead the banks to set up certain standards. The banks place generally place a great pressure on the sales persons to make huge profits. Selling of the derivatives is highly incentivized in bonuses and promotions. The large targets are placed on the products and they must meet the criteria for the wrath of management. The systems lead to the circumstances that the salespeople are under pressure and they are paid for selling a product which is supposed to be in the best interest of the customer. Looking at right ways, the customers are on the right track as well as hitting the sales targets can be visualized as diametrically opposite to another (The causes of the misselling scandal, 2012).  Ã‚