Programme: Understanding how the FCA regulate financial incentives

Start 10.00 - Finish 13.00

The Regulatory Framework

FSA Guidance

  • How the FCA expects firms to manage incentive schemes
  • What is considered as ‘mis-selling’?
  • Incentive scheme features that increase the risk of mis-selling
  • Managing the risks and governance of incentive schemes to deliver good customer outcomes

The FCA Thematic Review

  • Key findings
  • Examples of good and poor practice linked to incentive schemes
  • Next steps for firms and the FCA

Potential Sanctions

  • Details of recent FCA enforcement action regarding incentive schemes

Case Study/Group Exercise – identifying inappropriate aspects of incentive schemes and how they can be rectified.

Key features of an incentive scheme

  • Remuneration
  • Staff supervision
  • Monitoring and verification
  • Governance and management information

Employment law issues

  • Introducing new incentive arrangements
  • The exercise of discretion in incentive arrangements
  • Incentives on termination of employment
  • Commission and holiday pay

Summary and conclusion

Become a member

What are the benefits of becoming an FLA Member?