Staff incentives, remuneration and performance management in consumer credit firms

In July 2017, the FCA consulted on non-handbook guidance in consultation GC17/6. The consultation sought views on guidance to assist firms in identifying features of their incentive or performance management arrangements that might give rise to potential harm to consumers, and ways they can more effectively manage those risks.

The FCA have now published their final guidance on how consumer credit firms should manage risks related to how they pay and manage the performance of their staff. The guidance supports firms’ compliance with the final rules (CONC 2.11)