TSB first to disclose true costs of policies
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE FIRST high street bank to tell its customers how much its salespeople earn from selling life insurance and pensions policies will be TSB.
It will also tell customers its own expenses on each policy sold.
The bank is to move to the new system at the beginning of November, two months before all banks, building societies and life insurance companies become obliged to tell customers the true cost of life insurance and pensions products.
From November all TSB salespeople will give advice over the entire range of banking and insurance products.
Previously each branch had one salesperson to give advice about life insurance and pensions products while other staff dealt with current accounts, bank loans and overdrafts. The new combined salesforce will be paid mainly by salary rather than commission.
The new structure means all TSB branch managers will become authorised under the Financial Services Act. Each branch will have three or four people authorised to give advice on all of TSB's products. In total the bank will have about 2,900 authorised sales staff against 900 previously.
John Elbourne, retail banking director, said: 'The new structure will probably bring an end to the very highly paid salesman. We are anticipating that about 5 per cent of the sales force will leave. High- earning salesman are not going to be attracted by the new structure.'
He said the maximum salary a salesman would earn would be about pounds 45,000. This compares with pounds 100,000 or more commission remuneration for top-earning salesmen. Mr Elbourne said the part of the staff remuneration that was not a salary would be based on the service the customer received on the entire product range.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments