Incentives: how to keep the FSA at bay

INCENTIVES

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Roderic Rennison, director at The Ideas Lab, explains the implications of the regulator's work on incentives…

The Financial Services Authority's (FSA) recent paper on risks to customers from financial incentives highlights the need for advisers to have robust systems and controls in place to monitor good practice, according to consultant Roderic Rennison. He said how firms measure performance is key: "You can't just have quantitative measures you have to have qualitative measures as well." Three areas to look for Rennison breaks these measures down into three areas: the quality of the advice given; customer feedback; and complaints data. "On the quality of advice, a firm needs to ask: ‘doe...

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