Financial services sales people are often criticised for selling to clients they first sold to when working for a previous company. When they move between companies they take their client list with them. Disturbing the client from the previous contract and selling another will create greater costs for the client, but generate fees for the salespeople.

If the client should be ‘disturbed’, what does that say about the original advice? Incentives increase the probability of poor advice (or advice that’s best for the salesperson).

Similarly, independent financial advisors (brokers) are often incentivised to change the insurer when a contract comes up for renewal.

Incentives increase the probability of poor quality selling.