Open University To Go Global With Online Courses

The Open University (OU) has launched a campaign to take distance learning global - as it attempts to catch up with online course offered by US colleges.

The OU has teamed up with 10 British universities in a venture called FutureLearn.

The plan is to give free virtual lectures that are supplemented by digital learning tools to help promote UK institutions.

OU vice-chancellor Martin Bean told Sky News: "You won't be able to get a degree through FutureLearn but you will be able to get free access to some of the best higher education content on the planet.

"In a world of higher fees where people are taking on more of that responsibility for themselves I think they're going to demand better teaching ... and I'm sure it will help these universities really develop new, innovative and experimental teaching practices."

The decision to go global comes after leading US colleges, including Harvard, MIT, Texas and Georgetown, launched various learning partnerships.

One partnership involving Stanford already has two million users around the world.

Professor Bean admitted: "There's no doubt the Americans have got a little out in front of us on this one."

But he insisted the move would benefit Britain's universities.  

"It strengthens brand and competitiveness, it allows them to experiment and develop new teaching strategies for their students on campus and online," he said.

"And it also creates some revenue opportunities in being able to compete for all of those transnational students that are often in developing parts of the world."

The OU has been running courses since 1971, initially using late night television programmes to supplement course notes.

Supporters see FutureLearn as an important way to put students on a path that may lead to traditional tertiary education - a lucrative sector for colleges.

But there are doubts whether any money can be made from massive open online courses (Moocs), even though one in the US has 160,000 users.

Moocs do not carry degree credits and concerns have been raised about plagiarism and the manpower needed to check the work of tens of thousands of students that may be on a single course.

Money-making concepts have included offering free courses but charging for exams, certificates and tutoring.

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EU Summit: Cameron 'Committed To Saving Euro'

The Prime Minister has made it clear he wants favours in return for signing a deal aimed at increasing economic and monetary union in the European Union.

At the seventh and final EU summit of the year, David Cameron insisted the UK was not in an uncomfortable position, despite refusing to have its banks monitored by a centralised supervisor.

"We did not stand in the way of the eurozone having a banking union ...now there are opportunities for us to seek changes in our (EU) relationship, changes that the British people will be more comfortable with," he said.

"They (the eurozone countries) want to make changes, and we can ask for changes too."

His comments come a day after European finance ministers took a major step towards full banking union by agreeing to create a single supervisor for eurozone banks.

But although the UK will not be subject to the scrutiny - continuing to monitor its own institutions - Mr Cameron insisted that Britain "remains at the heart" of decision making in Europe.

The ECB will oversee all banks in the 17 EU countries that use the euro

"I don't think Britain is in an uncomfortable position at all," he said.

"I think we are in a position where we have opportunities to maximise what we want from our relationship with the European Union.

"The fact is we have a multi-faceted Europe, we have a Europe where countries like Britain are absolutely at the heart of decision making."

Earlier this year, Mr Cameron called for a "new settlement" between the UK and Brussels and on Thursday said his focus was now on getting a "better deal" for Britain.

The banking deal gives the European Central Bank (ECB) oversight for lenders in the 17 EU countries that use the euro - and any other country that wants to opt in.

It also paves the way for Europe's bailout fund to give direct aid to ailing banks - a measure seen as vital to helping the eurozone break free of its debt crisis.

The agreement, which follows months of negotiations, was described by the president of the European Commission, Jose Manuel Barroso, as a "deep and genuine economic and monetary union", which requires "steps towards political union".

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UBS Faces $1bn Fine Over Libor Manipulation

UBS is expected to be hit with a fine of around $1bn to settle Libor manipulation charges.

The total amount - worth around £620m - will be a combined penalty from US and UK regulators, and is expected to be confirmed early next week.

UBS declined to comment on the news.

It comes two days after the Serious Fraud Office made three arrests as part of its investigation into the fixing of the interbank lending rate.

Sky sources suggested that one of the people detained previously worked as a trader at UBS, which has a big presence in the City of London.

Last month, the Financial Services Authority fined the Swiss bank £29.7m for internal failings that allowed a London-based rogue trader to cause the biggest fraud in British history.

Unauthorised trading by Kweku Adoboli resulted in £1.4bn worth of losses for UBS.

To date, Barclays is the only UK bank to have been fined in connection with the rigging of Libor.  

It was fined £290m in June, and its chief executive, Bob Diamond, resigned the following month. 

Libor - or the London Interbank Offered Rate - is the rate used to fix the cost of borrowing on mortgages, loans and derivatives.

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Queen Asks Bank Bosses About Financial Crisis

The Queen has finally had her question answered on why nobody saw the financial crisis coming during a visit to the Bank of England.

Four years ago, during the height of the global crisis, the Queen famously asked: "Why did nobody notice it?"

While on a tour of the Bank with the Duke of Edinburgh, she was given a thorough explanation of the 2008 downturn by Sujit Kapadia, who is on the bank's Financial Services Committee.

During the discussion, the Queen made her thoughts on the crisis clear, saying that the City regulator, the Financial Services Authority (FSA), "didn't have any teeth" and that there was complacency in the City.

She said to the workers: "People got a bit lax ... perhaps it is difficult to foresee (a financial crisis)."

The Queen also asked what authorities were doing now to prevent another global downturn.

When told by an employee that the men and women in the room were there to prevent another one, the Duke jokingly said: "Is there another one coming?"

Sujit Kapadia explained the crisis to the Queen

In the briefing, Mr Kapadia gave the Queen three reasons behind the crash of 2008 that brought banks around the world to their knees.

He told her that financial crises were like earthquakes and flu pandemics and, because they are rare events, they are difficult to predict.

He also said there was a new paradigm where people thought that markets were efficient and risks could be managed better than before.

"People thought markets were efficient, people thought regulation wasn't necessary," he told the Queen.

"Because the economy was stable there was this growing complacency.

"(Thirdly) people didn't realise just how interconnected the system had become."

Mr Kapadia said the Queen was very interested in what the Bank was trying to do to prevent another crisis.

"(She asked) what initiatives are in place, is the system less interconnected than it was before.

"The strongest thing I got (from the Queen) is what are we trying to do so it doesn't happen again.

It was the Queen's eighth visit to the Bank of England

"She actually agreed that it was very difficult to predict and she did latch on the idea that it is probably a bit like the flu pandemic."

Mr Kapadia said he then explained various reforms that had been put in place to keep economies stable.

The FSA has responded to the Queen's comments.

"We've widely acknowledged that the regulatory approach before the financial crisis in 2008 was flawed and has since been completely changed," a statement said.

"Parliament is now awaiting Royal Assent for the Financial Services Bill, which will determine the powers for the new regulators that will be created next year."

During the visit to the Bank, the Queen and the Duke also toured vaults full of thousands of slabs of gold worth billions of pounds and briefly inspected some of the gold.

The royal couple then signed a million pound note each for the bank's guest book.

The Queen was intrigued when she was shown the very first banknote she had signed for the guest book on November 29, 1937, as an 11-year-old.

The signature was a simple "Elizabeth" written in a neat young girl's script on a thousand pound note in the book.

On signing the note, the Queen said of her signature: "It hasn't improved much you know."

It was the Monarch's eighth visit to the Bank of England. As she walked out of the building towards a large crowd of people waiting outside, she said of her visit: "Very interesting, isn't it?"

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Youth Unemployment Falls Amid Jobs Record

There has been the biggest quarterly fall in unemployment for a decade amid a welcome drop in the number of young people without work.

The Office for National Statistics said unemployed 16- to 24-year-olds fell by 72,000 to 945,000 in the three months to October.

It helped drive a fall of 82,000 in the total jobless total to 2.51 million - with a record number of people now in work after what the ONS said was the biggest quarterly fall in unemployment since the spring of 2001.

The jobless total was down by 128,000 on a year ago.

Employment jumped by 40,000 to 29.6 million, the highest figure since records began in 1971 and up by half a million on a year ago.

The number of people claiming Jobseeker's Allowance fell unexpectedly in November by 3,000 to 1.58 million following rises in the previous two months. Analysts had expected an increase of 7,000.

The figures highlighted the growing gulf between public and private sector employment as public sector jobs fell for the 12th consecutive quarter, by 24,000 to 5.7 million, the lowest since 2002.

Employment in the civil service was cut by 3,000 to 455,000, the lowest since records began in 1999, while local government employment also fell to a record low of 2.5 million after a cut of 32,000.

Private sector employment rose by 65,000 in the latest quarter to 23.8 million, the highest on record.

That figure was seized on by employment minister Mark Hoban as proof that the Government is delivering on its economic programme.

He told Sky News: "Cynics were saying the private sector wouldn't step up to the plate, they wouldn't create the jobs ...to offset losses in the public sector but we've seen in the last year an extra half a million people in work."

But Paul Kenny, general secretary of the GMB union, claimed that the Government's handling of the economy meant that millions of families faced another miserable Christmas with "little hope of things getting better".

He said: "Instead of the recovery the Government inherited in 2010, the economy faces a triple dip recession due to the failed and futile attempt to deflate their way to growth."

At Prime Minister's Questions in the Commons, the Labour leader Ed Miliband welcomed the fall in unemployment but highlighted stubborn long-term unemployment and sought assurances from David Cameron that more would be done to tackle it.

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Barclays Hires Former FSA Boss Hector Sants

Barclays has hired the former chief executive of the Financial Services Authority (FSA), Hector Sants, as its head of compliance.

The bank's interest in Mr Sants, which was exclusively revealed by Sky's City Editor Mark Kleinman last week, emerged soon after news that accounting firm Deloitte had held talks with him over the prospect of a new job.

Kleinman said then that taking a Barclays role would be seen as significantly more controversial than a move to Deloitte, given the bank's involvement in the Libor-fixing scandal this year.

Mr Sants stepped down from the FSA in June, the same month in which the regulator fined Barclays £59.5m for manipulating the interbank borrowing rate Libor.

In September, Mr Sants released correspondence with Barclays to Andrew Tyrie, chairman of the Treasury Select Committee, in which it emerged that he had raised profound concerns about the culture and governance arrangements at Barclays when Bob Diamond was appointed as the bank's chief executive in 2010.

Kleinman learned that Antony Jenkins, who replaced Mr Diamond as CEO, was keen to recruit Mr Sants to bolster the status of Barclays' compliance and regulatory oversight functions and make them integral to the way the bank operates.

Mr Jenkins is due to present his strategy for Barclays to the City in February on the day of its 2012 results. The new boss of Barclays has stated publicly his desire for it to become the "go-to bank" in terms of the ethical standards with which it conducts its business.

The move effectively sees Mr Sants swap sides from one of the regulator to being the first point of contact at Barclays on regulatory matters.

The role will also include him policing trading activities.

He said today: "I left the FSA with the intention of finding a role which would allow me to put into practice the experience I have gained in both the public and private sector.

"Taking on the responsibility of leading Barclays global compliance function, and overseeing the bank's relationships with governments and regulators, gives me that opportunity.

"I am delighted to have been asked by Antony Jenkins to create and implement a new compliance concept and approach which will be central to the cultural change which is already underway at the bank."

Barclays share price was 1% higher shortly after the announcement was made.

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Libor Scandal: UK Police Make Three Arrests

The Serious Fraud Office (SFO) has made three arrests as part of its investigation into the manipulation of the interbank lending rate, Libor.

The major banks declined to comment on the development but Sky sources have suggested that one of the people detained used to work as a trader at the Swiss bank UBS, which has a big presence in the City.

The SFO, with the assistance of the City of London Police, executed search warrants at three residential premises - one in Surrey and two in Essex.

It said in a statement: "Three men, aged 33, 41 and 47, have been arrested and taken to a London police station for interview in connection with the investigation into the manipulation of Libor."

It added: "The men are all British nationals currently living in the United Kingdom."

The SFO's criminal inquiry began in July when it decided existing legislation gave it the scope to bring potential prosecutions.

While the identities of those arrested and their employers are not known at this stage, it is known that the SFO's inquiry has been wide-ranging and not limited to Barclays - the only UK bank so far to have been fined in connection with the scandal.

Bob Diamond quit Barclays after its £290m fine came to light

The £290m penalty inflicted on Barclays preceded the departure of its chief executive Bob Diamond and forced the British Bankers' Association to signal it would abandon its responsibility for oversight of Libor amid a clamour among politicians for reform.

Libor, which stands for London interbank offered rate, affects more than £350trn in global transactions and the rates created through the submissions bear a heavy influence in the calculation of a host of financial products including mortgages.

The City regulator, the Financial Services Authority (FSA), has been working closely with the SFO in its investigation.

A review of Libor by the FSA's boss Martin Wheatley has suggested a new body be created to oversee it with the rates set being based more on actual trades rather than just banks' own estimates.

Around 16 financial institutions have been investigated worldwide over alleged Libor rigging - including a total of three based in Britain.

Taxpayer-backed Royal Bank of Scotland has previously said it hopes to settle any claims over Libor manipulation soon and warned that potential penalties could be significant.

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Virgin Atlantic Takes On BA With Delta Deal

Singapore Airlines has sold its 49% stake in Virgin Atlantic to rival Delta, in a move that will bolster Virgin's reach in the United States and intensify its rivalry with British Airways.

The deal was announced just 24 hours after a verbal spat between the chief executive of BA's parent firm and Virgin founder Sir Richard Branson over Virgin's future.

In their statement, Delta and Virgin said their joint venture would enhance competition between the UK and North America, offering greater benefits for customers travelling on those routes.

As part of the agreement Delta, which is the largest carrier in North America, will invest $360m (£224m) in Virgin Atlantic.

Virgin Group and Sir Richard will retain a majority 51% stake and Virgin Atlantic Airways will retain its brand and operating certificate.

Between them, they will jointly operate up to 31 round-trip flights between the US and UK each day.

Delta is taking a 49% stake in Virgin Atlantic

Steve Ridgway, Virgin Atlantic Chief Executive, said: "Consumers will reap the rewards of this partnership between two great airline brands on services from the UK to the USA, Canada and Mexico through a shared ethos in the highest standards of customer service.

"This unique joint venture will deliver much more effective competition at Heathrow.

"Both airlines are confident that the Department of Transportation will be as convinced as we are of the extensive consumer benefits arising from this joint venture, with expedited approval being granted by the end of 2013.

"The transatlantic market is Virgin Atlantic's heartland - it's where we started. By aligning with Delta we can continue to grow our North American network and offer greatly enhanced connectivity across the USA."

Sir Richard Branson and Willie Walsh are at each other's throats

Sir Richard, who is Virgin Atlantic's President, commented: "This is an exciting day in Virgin Atlantic history. It signals the start of a new era of expansion, financial growth and many opportunities for our customers and our business.

"I truly look forward to the possibilities our partnership with Delta will offer. We have always been known for our innovation and service and have punched above our weight for 28 years. That is why our customers love us so much.

"We will retain that independent spirit but move forward in a strengthened partnership with Delta."

News of the deal followed the latest spat between BA and Virgin. Sir Richard offered to pay staff at BA £1m if the Virgin brand disappeared within five years as the boss of BA's parent firm, Willie Walsh, had suggested would be the case if Delta sided with Virgin.

Mr Walsh is reported to have responded that he did not have £1m as he was not a billionaire banker (referring to Virgin Money) but would settle for a 'knee in the groin' instead.

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E.ON Is Last Of 'Big Six' To Raise Energy Bills

The last of the major energy firms to confirm its winter price rises, E.ON, has said its bills will be going up from January 18.

The company is writing to customers to inform them of their plans, which will see the average dual fuel bill rise by 8.7%.

It blamed the increase on rising wholesale prices for energy and other factors such as rising network costs.

The announcement was seized upon by price comparison experts who claimed the increase would take the average UK dual fuel bill to a new record high.

E.ON said the move would mean the average electricity-only price rising by 7.7% with average gas-only prices going up by 9.4%.

uSwitch says UK average energy bills have reached a new record high

But around one in six of its 4.8 million customers would endure no increase at all, the company said, because they were on either capped or fixed products.

Chief executive Tony Cocker said: "We have held back from increasing our prices for as long as we possibly could and at the same time have worked hard to reduce our own costs as a business so that our customers can get the best price possible.

"However, some 16 months after our last price increase, and almost a year since we actually cut our electricity prices, we have had to make the difficult decision to increase our prices."

He explained: "In the next few days every customer affected by this price change will receive a letter from us explaining the detail behind this announcement.

"Wherever we can, we will include the likely impact on the customer's own bill. However, as well as the individual impact, the broader question is not what we are doing but why we are doing it.

"We have worked hard to reduce our own running costs which include tasks such as reading and changing meters, answering queries and managing our customers' accounts."

Mr Cocker also moved to defend E.ON from any suggestion that it was ripping off customers through price rises.

He said: "We also believe our profit levels are fair and will continue to be so.

"Last year our domestic profit margin was less than 2% and we will make public the amount we make this year when we publish our 2012 results. 

The company had pledged not to raise its prices during 2012 and was accused today by the founder of MoneySavingExpert.com, Martin Lewis, of being "disingenuous".

Price comparison website uSwitch said the move would take E.ON's average dual fuel bill from £1,260 a year to £1,370 and would make the company the most expensive supplier for standard cash and cheque customers.

The decision also meant, uSwitch said, that the average household energy bill had reached a new all-time high of £1,352 a year – a 23% increase since January 2011.

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HSBC 'To Pay $1.9bn' In Money Laundering Case

British banking giant HSBC will pay a record $1.9bn (£1.2bn) to settle a money-laundering probe by US authorities into Europe's biggest bank, reports say.

The investigation of the bank has focused on the transfer of billions of dollars on behalf of nations such as Iran and the movement of money through the US financial system from Mexican drug cartels.

Reports say the bank is expected to pay $1.25bn (£778m) in forfeiture - the biggest such amount in any case involving a bank - on top of $655m (£408m) in civil penalties.

Under what is known as a deferred prosecution agreement, the bank will be accused of violating the Bank Secrecy Act and the Trading With The Enemy Act.

The bank says it is co-operating with investigations but that those discussions are confidential.

Standard Chartered agreed to pay £203m to settle money laundering claims

A US Senate investigative committee reported earlier this year that in 2007 and 2008, HSBC Mexico sent about $7bn in cash to the US. The committee said such an amount of cash pointed to illegal drug proceeds.

Last month it emerged HSBC was setting aside as much as $1.5bn (£935m) to cover the likely bill for fines from US authorities.

The HSBC agreement comes after another London-based bank, Standard Chartered, agreed to pay $340m (£203m) to settle federal charges that it laundered money on behalf of four countries, including Iran, that were subject to US economic sanctions.

That deal covered currency transactions made at the bank's New York branch for Iranian, Sudanese, Libyan and Burmese entities from 2001 to 2007.

With US officials increasingly cracking down on money laundering by banks, Credit Suisse, Barclays and Lloyds have all paid settlements since 2009 related to allegations that they moved money for people or companies that were on the US sanctions list.

An official announcement of the HSBC agreement is expected as early as Tuesday.

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Tax Row 'Helping John Lewis Online Sales'

Tax Row: Convenience Still Priority

Updated: 7:27pm UK, Sunday 09 December 2012

By Tadhg Enright, Business reporter

Recession? What recession?

So has been the mantra at John Lewis throughout the financial crisis during which sales growth consistently outperformed its high street rivals.

The recession is over but consumers are still expected to buy less, not more, this Christmas.

So could it be a bit of a stretch to suggest that stellar growth in John Lewis sales this past week has anything to do with Amazon's recent exposure as an avoider of UK corporation tax?

Speaking to Sky News, the retailer's boss Andy Street acknowledged "I can't prove it" and that it could all just be a coincidence.

While sales rose 15% over the past week compared to the same time last year, he pointed in particular to even higher (but undisclosed) growth in online sales.

But with internet shopping becoming more normal with each passing year, most online retailers are enjoying double digit growth.

And John Lewis has not been left wanting with its approach to so called "clicks and mortar" retailing.  It has been a trend leader rather than a follower so will naturally enjoy better growth than others.

Also bear in mind that John Lewis and Amazon are very different retailers and the overlap between their customer bases is thin.

Ask any business journalist and they'll tell you that John Lewis will take any chance to get a bit of free, positive publicity. Amazon has been more of a shrinking violet during the controversy over its taxes.

Business reporters who have been canvassing shoppers outside branches of Starbucks will also know that a majority of the people they speak to are oblivious to the scandal over its tax affairs.

Of those who know all about it, only a fraction are likely to avoid the tax-avoiders.

But Starbucks' u-turn shows just how serious some are taking the tax debate.

It has decided to pay £20m in corporation tax over the next two years, which, it maintains, it does not have to pay.

That wasn't enough though to prevent protesters occupying some of its cafes this weekend.

But it will be enough to convince the more nonchalant among us that it's ok to get your latte at Starbucks again.

In fact, consumer experts will also tell you that when a company puts right what once was wrong it can often enjoy a boost rather than a simple bounce-back in sales.

With 15 days to Christmas, the rush is on and many consumers simply don't have the time, energy or patience to change their habits.

Amid the chaos, shoppers are more likely than ever to put convenience before conscience.

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Twitter Fined Over UK Business Accounts Delay

By Pete Norman, Sky News Online

Social media giant Twitter has been fined after failing to file its UK corporate accounts, Sky News has learned.

The company was due to lodge its annual accounts no later than September but has still not done so, according to Companies House.

As a result Twitter UK Ltd and its secondary company, TweetDeck Ltd, have been hit with automatic penalty charges by the Cardiff-based authority.

The penalties are set to climb if the companies continue to delay filing the accounts.

The returns are used as a basis for tax filings with HM Revenue and Customs (HMRC). There is no suggestion the companies have avoided any tax liability.

A spokesman for Companies House told Sky News: "They are both currently in default on the submission of accounts to us on their respective due dates.

The website for Companies House, based in Cardiff

"Companies House records show Twitter's accounts should have been delivered by September 30 but there is no indication this has been done.

"There is no indication at this stage when the accounts will be available but as a matter of routine we will already be in correspondence with the companies to request that they file as soon as possible."

Twitter UK and TweetDeck are wholly-owned subsidiaries of California-based Twitter Inc.

Twitter declined to respond to repeated requests from Sky News for comment on the revelations.

TweetDeck was started by Sheffield-educated computer programmer Iain Dodsworth in 2008 and sold to Twitter last year for an estimated £25m.

Twitter UK has three American directors, Ali Rowghani, Richard Costolo and Alexander Macgillivray, who list their address as a San Francisco office.

Mr Macgillivray is company secretary for both Twitter UK and TweetDeck. He is also general counsel for the parent firm and head of its public policy and trust department.

According to the Institute of Directors, one of the formal duties of a company secretary is to take responsibility for filing annual returns to the registrar in Cardiff.

Iain Macgillivray (r), the US-based company secretary of Twitter UK Ltd

The spokesman for Companies House added: "At this time they will have already attracted a late filing penalty in accordance with the tariff published on our website.

"Failure to provide accounts for the public record can, ultimately result in company strike off, however, we are some way from that at this stage.

"Our objective remains, as always, to get the companies concerned to file their account so that these can be made available for public access, which we hope will be a positive conclusion to our continuing correspondence."

Mr Macgillivray, who also holds Canadian citizenship, became TweetDeck's company secretary after services of the British incumbent - Complete Secretarial Solutions Ltd - were terminated in May, 2011.

TweetDeck's founder, Mr Dodsworth, had his role as a director terminated in July, 2011.

The social media giant's British operation was originally named Twitter Information Network Ltd. It was incorporated on June 1, last year but given a name change to Twitter UK four months later.

The revelation about Twitter's filing status with Companies House comes amid increasing public furore over the tax arrangements of other US multinationals with HMRC.

MPs investigating corporate tax structures of multinational firms recently slammed Starbucks, Amazon and Google.

Last week Starbucks said it would give some £20m over two years to HMRC, even though it was not required to by law.

Google, Amazon and Starbucks have all come under fire

The move was slammed as a "gift" by critics and HMRC said: "Corporation tax is not a voluntary tax and Parliament sets out the rules and rates for businesses to follow.

"The public expects businesses to pay their fair share and HMRC will challenge, through the courts if necessary, any structures or tax payments that do not comply with the UK tax law."

Starbucks' decision followed a public outcry over its accounting procedures, whereby it paid just £8.6m in UK corporation tax despite receiving billions in revenue from more than 750 stores.

In an interview with Sky's Jeff Randall, Starbucks CEO Kris Engskov said the US coffee giant had not been profitable in the UK since it brought its brand to Britain 14 years ago.

But he admitted their 2011 US report and accounts may be wrong when they referred to the fact that the UK was making a "significant portion of the net revenue and earnings of our international operations".

It was revealed Google paid £6m in UK tax in 2011 on sales of £395m, while Amazon paid no corporation tax in the same period, despite sales of £3.3bn.

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Bank Staff 'Under Pressure To Sell', Which? Says

Staff at Britain's largest banks remain under pressure to sell products to customers, often regardless of whether they are appropriate, an investigation claims.

Two thirds of bank staff with a sales role said there is now "more pressure than ever" to meet their targets, according to a Which? survey of front line bank employees.

Almost half of the 500 people interviewed said they knew colleagues who had mis-sold products to meet their targets, and 40% reported that they are encouraged to sell even when it is not appropriate.

Which? interviewed branch and call-centre staff from HSBC, Royal Bank of Scotland, Lloyds Banking Group, Barclays and Santander, and found that even when incentives are removed, the practice prevails.

Although over 40% said incentives for sales have decreased, more than 80% said the pressure to meet sales targets has stayed the same or increased.

The research comes despite a string of mis-selling scandals over recent years, knocking customers' trust in UK banks.

The PPI mis-selling scandal has cost the big banks £10bn to date

The most high-profile - the mis-selling of payment protection insurance - has already cost the big banks more than £10bn in compensation claims, with that bill expected to rise.

Of the staff surveyed, over a third said they are not comfortable with the pressure they are under to sell products, and two thirds added that they are sometimes or always ordered to sell more.

Which? chief executive Peter Vicary-Smith called for "big change" across the banking industry, with customers - not sales - put first.

"Our survey reveals the stark realities of the sales culture that still exists at the heart of the banking industry," he said.

"Senior bankers say the culture is changing but this shows it just isn't filtering through to staff on the front line who remain under real pressure to put sales before service, even after incentives are taken away.

"We're calling on the banks to be much more transparent about their sales targets and incentives.

"We also want to see bankers meet professional standards and comply with a fully independent code of conduct."

A spokesman for the British Bankers' Association (BBA) said that any incentives for front line staff are now based on clear criteria related to customer service.

"Selling people products they do not need is not putting the customer's interests first and therefore is ultimately bad for the bank," he said.

"The banks will be looking at the findings of this small survey - along with their own internal research - to understand why any staff might feel otherwise."

Which? said it will provide a collection of evidence on the banking industry to the Parliamentary Commission on Banking Standards, the Government and opposition MPs, and the Financial Standards Authority (FSA).

Barclays and the Co-operative bank have already announced plans to refocus their incentives schemes on customer service.

A spokeswoman for Barclays said: "From this week all Barclays UK front line staff are rewarded solely on customer service.

"This follows our announcement in October which was welcomed by Which?"

An HSBC statement said the bank encourages its employees to act "with integrity in the best interest of our customers".

"No one in the UK retail bank, not just customer facing staff, can earn a bonus without meeting the bank's values and behaviours criteria," it said.

And a spokeswoman for RBS said that its staff are rewarded on the basis of customer service and the performance of their branch overall.

"This is part of our move to make sure that customer service is the top priority for all of our staff," she added.

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Starbucks Tax Row: Protestors Occupy Stores

Anti tax avoidance activists have staged protests at more than 50 Starbucks stores to complain about the coffee chain's tax arrangements.

UK Uncut said it was the most widespread day of action it had ever held, showing the depth of anger at the scale of tax avoidance by some large companies.

Pictures uploaded to its Facebook page showed campaigners holding banners and posters while others staged sit-in protests.

The demonstrations went ahead in cities including London, Glasgow, Belfast, Liverpool, Sheffield and Portsmouth even though the US giant announced changes to its tax payments.

Starbucks said it expects to pay around £10m in UK corporation tax for each of the next two years, following the revelation that it paid just £8.6m in 14 years of trading in Britain and nothing in the last three years.

Starbucks' Kris Engskov wrote an open letter to customers on Thursday

UK Uncut said it had "transformed" Starbucks stores into refuges, creches and homeless shelters to highlight the tax issues as well as the effect of Government cuts on women.

There was a police presence at many of the protests, with some of the demonstrators told to report to a police station within seven days. There were two arrests in London.

A UK Uncut spokesman said: "It has been an overwhelming success, sending a clear message to the Government as well as to huge corporations."

One store in Vigo Street, central London, was occupied by protesters at noon and then temporarily closed.

Dozens of activists chanted and waved placards and banners outside, shutting off the street to traffic under the gaze of the police.

The store was transformed into a domestic violence refuge as the protest sought to highlight the "disproportionate" effect that the coalition's cuts to the public sector are having on women.

Lisa Stewart, a 30-year-old UK Uncut activist, said: "Women are bearing the brunt of these cuts, and if they (the Government) made tax-dodgers like Starbucks pay that would bring in £25bn a year.

"Think of all the spending cuts that we could cover with that."

Ms Stewart said the reaction from customers inside the store had been positive, adding: "There is lots of anger out there and people realise they are being lied to."

In an open letter to customers on Thursday, Kris Engskov, managing director of Starbucks UK, said the company had begun "a process of enhancing trust with customers and the communities that we have been honoured to serve for the past 14 years".

He said the company injects nearly £300m annually into the UK economy, and will train more than 1,000 apprentices over the next two years.

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