Regulator outlines review into sales incentives

The Financial Services Authority (FSA) has outlined the research behind its decision to open a consultation on sales incentive schemes in the financial services industry.

The watchdog said it expected firms to consider carefully whether they had incentive schemes that increased the risk of mis-selling, to review whether their governance and controls were adequate, and to address any shortfalls - including changing the scheme where necessary and paying redress to customers that may have been mis-sold.

According to the regulator, its review had set out clearly how firms were expected to manage their incentive schemes and gave a strong indication of how the