The Panel wants a 'duty of care' to be added to the Financial Services Bill to increase consumer rights and drive a cultural change in the industry.
The suggested amendments reads, "and having regard to the general duty to provide those services honestly, fairly and professionally in accordance with the best interest of the consumers in question."
Adam Phillips, consumer panel chair, said: "We need to instill a new philosophy in our major banks and financial institutions of honest, fair and professional behaviour towards customers. This needs to be embraced by organisations and in particular at the highest levels."
Providers putting their own interest ahead of consumers has been the root of recent scandals such as PPI, Libor and interest rate swap with firms making a profit at the expense of the client.
"At their core, recent scandals such as interest rate swap misselling have the pursuit of profit with a complete disregard for the interest of customers. The incentive to bend the rules and to make a profit at the expense of the client needs to be removed. This must extend to examining the dubious reward structures which have been found to incentivise misselling."
Mr Phillips said the panel had secured cross-party support for the amendment and was hoping this would encourage the Government to take it seriously.
"Only tough action to change the culture of firms will result in more ethical behaviour."
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