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FSA sets out guidelines

FSA sets out guidelines

Category: Banking

Updated: 17/01/2013
First Published: 17/01/2013

MONEYFACTS ARCHIVE
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The Financial Services Authority (FSA) has published its final guidance on sales incentive programmes, including a list of examples of good and bad practice directed at financial institutions to help reduce the risk of mis-selling products such as packaged current accounts.

The regulator's final guidance on sales incentives follows its report in September last year which exposed a wide range of serious failings by banks.

The initial review revealed that out of 22 firms, 20 were found to be operating incentive schemes which could have been to the "detriment of consumers" and increased the risk of mis-selling.

The FSA has said that it expects banks and other financial service institutions to conduct reviews into their sales incentive schemes.

Martin Wheatley, chief executive of the FSA, said: "Finalising this guidance is important because it gives financial firms a clear idea of what we expect from them and how they should manage their incentive schemes."

What next?

Find packaged bank accounts with a bundle of added value benefits - the package of benefits can include breakdown insurance, travel insurance, mobile phone cover, hotel, airport lounge and concert ticket discounts as well as access to preferential rates on other products such as credit cards, loans and mortgages. .

Is a current account with benefits for you? - Current accounts with benefits like travel insurance and roadside breakdown cover are becoming increasingly popular – but are they right for you?

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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