FSA finds serious flaws in salesforce incentives

Many providers are still developing products without assessing their risk to target customers, accor...

Many providers are still developing products without assessing their risk to target customers, according to research from the FSA. As part of a progress report on what it calls treating customers fairly (TCF), serious flaws were found within the rewards systems for many firms, which it believes incentivise salesforces to meet targets without measuring suitability and quality of sales. Although the FSA stressed TCF should not mean designing or marketing different products for each individual customer, it did acknowledge the industry may have to develop offerings for specific target market...