The FCA has published its finalised guidance (FG 15/10) following the thematic review into risks to customers from performance management at firms.
The report is aimed at all firms in retail financial services (including smaller firms) with staff who deal directly with retail customers, and some small and medium-sized enterprise customers, where relevant. It was prompted by an increasing level of intelligence about poor performance management practices received by the FCA during 2014.
Guidance is offered in areas such as:
- Reducing the risk from undue pressure.
- Monitoring performance management in practice.
- Risk-based monitoring for mis-selling.
The FCA recommends that all firms with staff who deal directly with retail customers should read the report and consider how their approach to performance management may increase the risk of mis-selling, whether their governance and controls are adequate and taking action where required to ensure the risks are adequately managed.
The finalised guidance can be read in full here.