The Financial Conduct Authority sees the winning back of consumer confidence as a critical success factor and is focusing heavily on positive customer outcomes through recent thematic reviews on issues such as industry sales incentives and inducement payments, which they feel could lead to inappropriate advice.
In their 20th March 2014 update the FCA raised a number of questions they suggest firms should be asking themselves around inducements and financial incentives, including:
- Doing more to identify inappropriate staff behaviour in face to face sales conversations
- Do you need to review the key performance indicators currently used to identify how the way people are remunerated might cause them to act in a manner that benefits them but is bad for clients
- Do you pro-actively look to identify where customers could be mis-informed or wrongly advised in a face to face conversation, in a way that might not show up in a file review
- How do you satisfy yourself that anyone speaking to clients is not putting their own interests before those of the client
To find out how you can confidently deal with these challenges click here for details of our Trust Competence Feedback (TCF) platform or click here for information on our standalone Trust Competence report facility