Incentives: good and poor practice

It follows a review of current practices, in which it found 20 out of the 22 firms assessed had features in their incentive schemes that increased the risk of mis-selling. The FSA wants firms to tighten their governance and controls and identified areas for firms to focus on and examples of good and poor practice from its review. Emphasising quality Bonus and incentive schemes need to reward good compliance (selling the right way) with a sufficient deterrent to penalise poor behaviour or mis-selling. Good practice Taking action on poor quality A firm took strong action when ...