Mis-selling in Finance as an Effect of Excessive Concentration on Sales
Mis-selling in Finance as an Effect of Excessive Concentration on Sales

Summary/Abstract: Mis-selling is an unethical behaviour on the part of sellers who mislead customers into buying products unsuited to their needs. Mis-selling is found in finances and banking, which is a major research issue, considering the importance of financial transactions, the long-standing nature and sizes of financial obligations, as well as the degree of their complexity. This article focuses on mis-selling in finances. The authors, using the desk research method, try to establish whether unfair commercial practices in the form of unethical sales of products unadjusted to consumers’ needs are linked with heavy concentration on selling services. The above issues are part of a larger debate on ethics in business. The article has three parts which focus respectively on: specific activities in the financial sector which are detrimental to consumers, the essence of mis-selling, and links between mis-selling and remuneration in banking. In the conclusions, changes are mentioned which result from amendments to the remuneration system and whose effects may diminish mis-selling.

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