FCA tightens net on adviser inducements in final guidance

clock • 2 min read

Advisers and providers share the burden of responsibility for managing potential conflicts of interest, the Financial Conduct Authority (FCA) said in a guidance paper out today.

The finalised guidance on inducements outlined that both parties are equally liable for inducements in receiving and making payments under service and distribution agreements. It stated payments from product providers to advisory firms should be "based on reasonable reimbursement for the costs incurred by advisory firms". It added any such payments "should always enhance the quality of service provided to customers". In the paper, the FCA lays the foundation to act before any conflict of interest is detected. "We are concerned with both potential and actual conflicts," the FCA s...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Wealth managers

The existential threat at the heart of Britain's biggest wealth manager

The existential threat at the heart of Britain's biggest wealth manager

Fees made St James's Place rich but now risk toppling the firm

Chris Newlands
clock 15 May 2024 • 10 min read
St James's Place results lay bare cost and charging challenges against market tumult

St James's Place results lay bare cost and charging challenges against market tumult

'Structural opportunity' for advice industry

Hope Coumbe
clock 28 February 2024 • 3 min read
SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

Open-ended structures 'have to work'

Valeria Martinez
clock 01 December 2023 • 2 min read
Trustpilot