On 27 November 2013, the Central Bank issued an information release on the results of its themed inspection regarding sales incentive practices in life assurers subject to the Consumer Protection Code (CPC).The Central Bank found that risks (which the Central Bank views as applicable to all regulated firms) existed in such incentives which may not be in customers' best interests.Such risks included the use of thresholds, targets and non-financial rewards based on sales volumes.In a letter published alongside the information release, the Central Bank sets out best practice guidelines, e.g. use of qualitative metrics and sufficient deterrents to discourage poor sales behaviours.The Central Bank also expects that firms (a) immediately consider its letter and assess their incentive structures in line with it, and (b) take any remedial action during 2014.
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Feedback from the Central Bank on insurers' sales incentive schemes
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