FSA to widen review into firms' sales incentives

clock •

The Financial Services Authority (FSA) is planning to widen its review into firms' sales incentives following an assessment last year which uncovered widespread failings among those operating incentive schemes.

It comes as the regulator produces final guidance for firms who have staff working under such schemes. The FSA's first review, published in September last year and encompassing banks, building societies, insurers, and investment firms, uncovered a range of serious failings, the regulator said. These included that most incentive schemes were "likely to drive people to mis-sell" and that firms were "failing to identify how incentive schemes might encourage staff to mis-sell". Additionally, some firms, the FSA said, failed to understand their own incentive schemes because they were so...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA secures money back for victims of £1.5m crypto fraud

FCA secures money back for victims of £1.5m crypto fraud

Obtains confiscation orders against Raymondip Bedi and Patrick Mavanga

Sophia Panayi
clock 28 September 2026 • 1 min read
FOS partially upholds complaint against SJP for failing to provide annual reviews

FOS partially upholds complaint against SJP for failing to provide annual reviews

SJP failed to provide five annual reviews for client

Sophia Panayi
clock 23 September 2026 • 3 min read
FCA: Simplified advice rules update imminent; MPS review outcome set for 2027

FCA: Simplified advice rules update imminent; MPS review outcome set for 2027

Regulator's Kate Tuckley gives update

Isabel Baxter
clock 08 September 2026 • 3 min read