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Wells Fargo & Company is set to drop all product sales goals in retail banking from 1 January 2017 after being fined by regulators for abusive sales practices.

Wells Fargo & Company CEO John Stumpf said: “We are eliminating product sales goals because we want to make certain our customers have full confidence that our retail bankers are always focused on the best interests of customers.”

Last week, the bank reached a $185m settlement with the US Consumer Financial Protection Bureau (CFPB) and two other regulators for secretly opening unauthorised deposit and credit card accounts.

The settlement includes a $100m fine by the CFPB, an additional $35m penalty to the US Office of the Comptroller of the Currency (OCC), and another $50m to the City and County of Los Angeles.

The bank has already dismissed 5,300 employees involved in these illegal sales practices.

“For the past several years, we have significantly strengthened our training programs, controls and oversight and have evolved our model to ensure we are rewarding deeper relationships and providing excellent customer service. The elimination of product sales goals represents another step to reinforce our service culture, helps ensure that nothing gets in the way of our ability to achieve our mission, and is consistent with our commitment to providing a great place to work,” Stumpf added.

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