Why must incentive scheme or commission be properly managed?

Study for the Specialist Automotive Finance Test. Use flashcards and multiple-choice questions with detailed explanations to get exam ready!

Incentive schemes shape how staff behave, so they must be designed to protect customers rather than just drive sales. If rewards are tied only to volume or revenue, advisers may be tempted to steer customers toward more expensive or unsuitable finance products, push unnecessary add-ons, or overlook affordability checks. Proper management of incentives aligns sales goals with fair treatment and compliant outcomes, reducing the risk of mis-selling or harming customers. That’s why the best answer focuses on avoiding risk or harm to customers.