FSA to widen review into firms' sales incentives

The Financial Services Authority (FSA) is planning to widen its review into firms' sales incentives following an assessment last year into operating incentive schemes that may drive mis-selling.

It comes as the regulator produces final guidance for firms who have staff working under incentive 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 we...