FinCoNet Guidance to Supervisors on the setting of Standards in the field of Sales Incentives and Responsible Lending

 

FinCoNet has developed the Guidance to Supervisors on the setting of Standards in the field of Sales Incentives and Responsible Lending based on its findings from the Report on Sales Incentives and Responsible Lending:
A study of the impact of sales incentives on the sale of credit products
, which was published in 2016, the views of FinCoNet members on those findings and FinCoNet’s consideration of submissions received to the public consultation on the Impact of Sales Incentives on the Sale of Consumer Credit Products report, launched in July 2016.

This Guidance to Supervisors on the setting of Standards in the field of Sales Incentives and Responsible Lending covers the following topics:

  • Appropriate Oversight;
  • Cross-selling;
  • Consumer-focused Culture;
  • General Duties and Specific Responsibilities;
  • Oversight of Different Sales Channels;
  • Firms’ Product Oversight and Governance;
  • Monitoring;
  • Disclosure; and
  • Promotional Incentives to Consumers.

The paper also contains a list, as identified by FinCoNet, of the necessary pre-conditions of the overarching regulatory framework, if supervisory initiatives are to be effective in the field of sales incentives and responsible lending.

Through this work, FinCoNet aims to further contribute to the promotion of sound market conduct and strong consumer protection through the efficient and effective conduct supervision of sales incentives and responsible lending.

 

Guidance (PDF)

Press Release (PDF

Responses received to Public Consultation on Impact of Sales incentives on the Sale of Consumer Credit Products report.

Central Bank of Brazil

Brokers Ireland

CGAP

Consumers International

Bank of Mauritius

Peru

Saudi Arabian Monetary Agency

South African NCR

 

   

 

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