SYSC 19F.3 Funeral plan remuneration incentives
Application
1This section applies to a firm carrying on regulated funeral plan activities.
Remuneration and the customer’s best interests
- (1)
A firm must not:
- (a)
be remunerated; or
- (b)
remunerate or assess the performance of its employees,
in a way that conflicts with its duty to comply with the customer’s best interests rule.
- (a)
- (2)
In particular, a firm must not make any arrangements by way of remuneration, sales target or otherwise that could provide an incentive to itself or its employees to recommend or offer a particular funeral plan contract to a customer when the firm could offer a different funeral plan contract which would better meet the customer’s needs.
- (1)
A firm should consider FPCOB 6.4R and FPCOB 6.5R when making arrangements which concern remuneration or performance incentives.
- (2)
Examples of remuneration arrangements which may conflict with the customer’s best interests rule include:
- (a)
arrangements which provide for higher levels of remuneration based on the price of the plan that is recommended or offered (i.e. higher remuneration for selling a more expensive plan);
- (b)
arrangements for remuneration or performance management which are based primarily on the number of plans sold, or the price of plans sold; and
- (c)
arrangements which do not have adequate provision for remuneration to be taken back if the customer cancels the plan.
- (a)