The Financial Conduct Authority (FCA) has found breaches to Principle 8 regarding conflicts of interest in half of the firms it reviewed as part of a report into inducements in the financial sector between advisers and providers.
The results of the FCA's thematic review highlighted "serious concerns" and a "poor management culture" in some firms whose actions have the effect of undermining the objectives of the Retail Distribution Review (RDR), the regulator said. Just over half the firms it sampled had agreements that the FCA considered could breach Principle 8 and the inducements rules and so undermine the objectives of the RDR. The review found some life insurance firms had arrangements in place which could influence advisers, contrary to the RDR's aim of removing commission bias in financial advice. The...
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