Regulatory Alerts2019-12-13
Retail Distribution Review Equivalence of Reward Position Paper December 2019
The Financial Sector Conduct Authority (FSCA) issued this position paper to update the 2014 Retail Distribution Review framework governing how long-term insurers remunerate their tied agents. It mandates that total compensation packages, including commissions, salaries, bonuses, and non-cash benefits, must align with the regulated commission ceilings applied to independent intermediaries. The paper outlines technical and framework measures to resolve calculation complexities, permits aggregated or transitional assessments for new advisers, and establishes clear compliance standards for incentive-based remuneration.
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