FCA sharpens focus on adviser hospitality

Found 'excessive' use of non-monetary benefits

The Financial Conduct Authority (FCA) has proposed to ban advisers from receiving "excessive" non-monetary benefits, such as lunches and dinners.

In its third consultation on European regulation the Markets in Financial Instruments Directive (MiFID II), out on 29 September, it said it would impose a blanket ban on hospitality, with the exception of minor non-monetary benefits, which it will list on its website. These would need to be "reasonable and proportionate and of such a scale that they are unlikely to influence the investment firm's behaviour in any way that is detrimental to the interests of the relevant client", it said. The regulator wants to curb what it deems is a "widespread provision" of non-monetary benefits appe...