CP17/20: Staff incentives, remuneration and performance management in consumer credit

Open consultation: CP17/20 incorporating GC17/6
Consultation closes
Policy Statement and Finalised Guidance
Q1 2018
Q1 2018

We are consulting on measures to address risks that can arise from the way consumer credit firms pay or incentivise their staff.

Show CP17/20 (PDF)

We have completed a thematic review of staff incentives, remuneration and performance management with 98 consumer credit firms. From this sample we found that some firms have inadequate systems and controls to manage the risks of staff incentives. Additionally some of these firms had not recognised the potential harm to customers that their incentive schemes could pose. The key findings from our thematic review are explained in Chapter 2.

In this consultation we are proposing a requirement on firms to detect and manage the risks to customers arising from their remuneration or performance management practices. We also set out guidance to assist firms in identifying features of their incentive or performance management arrangements that might give rise to potential harm to consumers, and ways they can more effectively manage those risks.

Who this applies to

This consultation affects firms that are engaged in credit-related regulated activity and are not subject to any of the existing remuneration codes (SYSC 19A – SYSC 19F). It may also be of interest to consumers and consumer organisations concerned with consumer credit activity.

What you need to do

Please send us your comments by 4 October 2017: 

Online response form

You can also:

  • email [email protected] or
  • write to: Kevin Mellis, Credit Supervision Thematic Team, Financial Conduct Authority, 25 The North Colonnade, London E14 5HS

Next steps

After the consultation has closed we will consider feedback we have received. Depending on the nature of responses, we expect to publish a Policy Statement in early 2018.

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