On September 28, 2016, the EBA published final Guidelines on
compensation policies and practices related to the sale and
provision of retail banking products and services. The purpose of
the Guidelines is to protect consumers from risks associated with
poor compensation policies and practices that promote the
mis-selling of financial products. The Guidelines apply to
compensation paid to staff employed by credit institutions, credit
intermediaries, payment institutions and electronic money
institutions when selling deposits, payment accounts, payment
services, electronic money, residential mortgages and other forms
of credit to consumers. The Guidelines contain a framework for such
firms to implement compensation policies and practices to improve
the correlation between compensation of sales staff and the fair
treatment of consumers, with the overall objective of reducing the
risk of mis-selling whilst also minimizing conduct costs for firms.
The final Guidelines have been amended following feedback received
during consultation. Amendments include separate requirements for
approval and monitoring of compensation policies and practices,
clarification of the type of information to be recorded by firms to
achieve compliance, limiting delegation of design and monitoring of
compensation policies to ensure that the management body retains
ultimate responsibility and clarification that the need to obtain
advice on the compensation policies and practices is limited to
firms that have established a compensation committee. The
implementation date of Guidelines has been postponed from January
3, 2017 to January 13, 2018. The extension is to provide market
participants with enough time to implement the Guidelines given the
revised application date of MiFID II of January 3, 2018 and align
with the application date of the Payment Services Directive II,
January 17, 2018.
The Financial Conduct Authority FCA has published the interim feedback to the call for input to the post-implementation review of the FCA's crowdfunding rules (FS16/13) (the Interim Feedback Report)...
On 11 October 2016 the FRC published its advice to audit committee chairs and finance directors of listed companies, highlighting key issues and improvements it considers can be made to annual reports in the 2016 reporting season.
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