SCB, KTB fined for forced sales

SCB, KTB fined for forced sales

Siam Commercial Bank (SCB) and Krungthai Bank (KTB) have instructed their staff at branches nationwide to strictly comply with the central bank's market conduct rules after they were fined more than 6 million baht combined.

On Wednesday the Bank of Thailand announced fines of 3.21 million baht for SCB and 3.54 million for KTB after it found staff at both banks forced customers to buy fire insurance policies issued by their affiliated firms.

KTB has instructed employees at all branches since the beginning of this year to avoid offering only products of affiliated companies, giving customers more alternatives, said president Payong Srivanich.

KTB ordered its branches to strictly comply with the Bank of Thailand's market conduct rules and radically revamped its working processes by focusing on three levels of internal risk management, communication and training to create understanding of market conduct practices, he said.

The bank also performs random checks to see if the measures are being followed and has clear punishment measures, said Mr Payong.

KTB's board has a clear policy to focus on ethics, promoting several activities such as Compliance Champion, CG in Process and zero tolerance, as well as its market conduct measures.

The bank prohibits staff from trying to force products on customers.

He said KTB has launched a Train the Trainer programme as a prototype, demonstrating the appropriate practice to offer financial services to customers. Those who fail the test are not permitted to sell any products to customers.

Moreover, the bank employs mystery shoppers in different zones to enforce compliance.

The central bank's comprehensive regulation on market conduct, covering end-to-end financial institution processes that are related to customer services, has been in force from the beginning of this year to ensure appropriate and fair services and fees. It also aims to provide information to protect customers' rights.

The regulation requires public disclosure of wrongdoing on the central bank's website and on the financial institution's website, where it can be easily accessed.

SCB said the bank realises the importance of market conduct and using a customer-centric approach.

"SCB has pleaded guilty and addressed the mistake by communicating and educating staff about market conduct, helping them to understand practical guidelines to prevent future mistakes," the bank said.


Do you like the content of this article?
COMMENT

Cuba offers medical scholarships for Thais

Cuba has offered 3,000 scholarships for Thai students nationwide to attend medical schools in Cuba, starting with 1,000 from southern border provinces where medical personnel are needed, Deputy Prime Minister Prawit Wongsuwon said on Wednesday.

13:57

Rebels take New Zealand pilot hostage in Indonesia

JAKARTA: Separatists in Indonesia's breakaway eastern region of Papua have taken a New Zealand pilot hostage after attacking a small passenger plane and setting it on fire at an airport in a remote mountainous area, officials and a rebel group said.

11:50

Pursuing policeman shot dead by motorcyclist

A fleeing motorcyclist shot dead a pursuing policeman in Pak Chong district of Nakhon Ratchasima on Tuesday night.

11:45