The purpose of this Discussion Paper is to stimulate discussion and obtain feedback from interested parties on the risks and benefits to the consumer of this practice of product producers paying commission to intermediaries for the sale of their products. This work seeks to build on our recent examination of variable remuneration practices where product producer employees and tied agents are concerned, in recognition that, as stated in our 2016 Consumer Protection Outlook Report, “by their very nature and intent, incentive schemes seek to drive the behaviour of individuals who are engaging with consumers and reflect the inherent culture within a firm.”
Interested parties are invited to respond to the questions posed in the paper by 18 October 2016.