The European Banking Authority (EBA) is consulting on draft guidelines on the remuneration practices of sales staff in the retail banking sector. The consultation is in the context of EBA research suggesting that poor remuneration policies and practices are a key driver of the mis-selling of financial products and services
The guidelines, if approved, will improve links between the sales incentives for staff and the fair treatment of customers, reducing the risk of mis-selling. They propose that a firm’s management body be responsible for designing and monitoring remuneration policies and practices and require EU firms to use both quantitative and qualitative criteria to determine the level of variable pay for sales staff.