The FSA has published a guidance consultation on the risk to customers from financial incentives paid to sales staff. The FSA reviewed a number of financial incentives schemes and found that most firms had schemes that could lead to mis-selling but did not have effective systems and controls in place to manage this risk adequately. Responses to the consultation closed on 31 October 2012. The consultation provides guidance on managing the risks and governance of incentive schemes including examples of good practice. These include ensuring effective oversight of incentive schemes by appropriate senior management.
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