A top regulatory lawyer has warned the Financial Conduct Authority (FCA) could eventually ban all forms of corporate entertainment by asset managers.
Tamara Cizeika (pictured) of London law firm Allen & Overy has said she expects the FCA’s stance on inducements will only harden over time, and the regulator will want to stop firms from hosting corporate hospitality entirely in future.
At the start of the year, the FCA issued an 18-page document covering its stance on inducements and highlighting some “poor practices” it had seen in the industry which it wanted to see quashed.
But readers commenting on the story have questioned whether a day out with a company is enough to influence investment advice, while others suggested tightening the rules could stifle legitimate industry relationships. Others still have pointed to the lack of clarity in the guidelines.
Do you think advisers would benefit from a clear ban on inducements? Or should the FCA make it clear the guidelines are as far as it goes? Let us know what you think in the Investment Week poll.
