SYSC 19F.4 Public offer platform remuneration incentives

This section applies to a firm with respect to the activity of operating a POP. 

• (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 COBS 2.1, in respect of its clients.
• (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 facilitate a particular qualifying public offer. 

• (3) Remuneration and similar incentives must not be solely or predominantly based on quantitative commercial criteria and must take fully into account appropriate qualitative criteria reflecting compliance with the applicable regulations, the fair treatment of its clients and the quality of services provided to its clients.

A firm should be aware of:

(1) the requirements in relation to remuneration policies (SYSC 4.3A.1AR) and conflicts of interest (SYSC 10.1.7R);

(2) Finalised Guidance 13/01 entitled ‘Risks to customers from financial incentives’ published in January 2013; and

(3) Finalised Guidance 15/10 entitled ‘Risks to customers from performance management at firms’ published in July 2015.