CRA was asked by the ABI to conduct research into the market impact of encouraging Customer Agreed Remuneration (CAR) as a method for determining intermediary remuneration for financial advice. The objective was to assess its impact on actual or perceived bias resulting from the current remuneration models, and whether it encourages additional saving and greater provision of advice.
What is disparate impact testing?
Disparate impact testing requires quantitatively testing models for fairness with respect to classes of borrowers protected under the Equal Credit Opportunity...