- How much capital will I need to invest to be a partner at Big 4 firm?
- Doing Their Part: Accenture’s Ed Meehan talks about the “Hiring Our Heroes” Workshops
- 3 essential people you MUST have in your corner if you have a fighting chance of making partner
- How Should Consultants Best Use Facebook and Social Media
- 7 options to avoid lowering your fees for a client
- The only 8 metrics you need to make sure your business development activity is hitting the spot
- 3 simple questions to help you find your niche
- How to Deal with Client Unresponsiveness
- How my love affair with Buzzards will help you generate more referrals
- Every Coin Has Two Sides: Ernst & Young’s Joe Steger Talks With Big4.com About Q1 Global technology M&A update
PwC: Comments on FSA review into sales incentives
September 6, 2012
Rob Starr, Content Manager, Big4.com
David Kenmir, financial services regulatory partner at PwC recently commented the recent FSA announcement regarding seeing an end to mis-selling created by sales incentives.
He said it emphasised the need for firms to demonstrate product suitability for customers and that it was a clear indication of the FSA’s determination to force firms to manage conduct risk throughout the product life cycle more effectively than they have in the past.. He noted firms must put customers at the heart of their strategy, culture, and risk appetite. Product manufacturing, distribution and post sales administration processes would need to be aligned so that they deliver products and services which meet customer needs.
“Increased and more stringent regulation is here to stay and financial services firms will need to adapt to this. Additional investment will be required in areas such as HR, technology and other operational policies and procedures,” he said. “Firms will have to prove how they understand and appropriately manage customer risks as part of their day to day business, and they will need to define conduct risk appetite and demonstrate how this is being adhered to while ensuring it is compatible with the strategic focus of the firm.”
Jon Terry, remuneration partner at PwC, also commented on the impact on financial services remuneration.
“Without proposing any specific changes at this stage, it is clear the FSA are concerned with the manner in which many sales incentive plans operate. In particular, there is a view that the plans do not adequately account for risk, quality or conflicts of interest in the sales process.”