- Central Bank seeks views on the payment of commission to intermediaries
- Discussion Paper outlines current practices of paying commission
- Views sought on the risks and benefits to the consumer
The Central Bank of Ireland has today published a Discussion Paper to seek views on the risks and benefits to the consumer of the practice of insurance companies, banks and other financial firms paying commissions to intermediaries who distribute their financial products.
It is important that the remuneration structure for staff of both financial services providers and financial intermediaries is designed to encourage responsible business conduct, fair treatment of consumers and to avoid conflicts of interest.
As outlined in our Consumer Protection Outlook Report 2016, incentive schemes, by their very nature and intent seek to drive the behaviour of individuals who are engaging with consumers and reflect the inherent culture within a firm. This Discussion Paper seeks to build on the Central Bank’s examination of variable remuneration to sales staff of banks, insurance companies and other financial firms.
The Paper is available here. Interested parties are invited to respond to the questions posed in the paper by 18 October 2016. Submissions should be emailed to [email protected].
Responses to the Discussion Paper will be published on the Central Bank website and will be used to inform the Central Bank’s ongoing consideration of its policy position in relation to the practice of paying commission to intermediaries, our engagement on this topic in domestic, EU and international fora and any technical advice to Government on the legislative framework for the regulation of financial services.