FSA to relax indirect benefit framework

The FSA is to allow product providers to make cash injections to intermediary firms as long as the m...

The FSA is to allow product providers to make cash injections to intermediary firms as long as the money is spent on IT systems, software or upgrades in this area. The regulator proposes to retain the broader framework of its indirect benefit rules in the depolarised world but is amending one to allow providers to provide cash for, or assistance with, IT systems as long as the provider can identify equivalent cost savings to itself or its customers. At present, for example, providers can supply generic product information to an intermediary for a mailshot but are barred from assisting the...