Inducements: Why small DA firms are in the FCA's sights too

INDUCEMENTS

Carmen Reichman
clock

Small firms did not fall within the scope of the FCA's crackdown on provider 'inducements'. But that doesn't mean they're completely out of harm's way...

There is evidence, the Financial Conduct Authority (FCA) says, that some marketing, services or training deals between providers and advisory firms represent commission by another name. Though it came as little surpise to some, the regulator said it had detected widespread breaches of its conflict of interest rules among the 80 agreements it reviewed between life insurers and advisers. According to the regulator, the deals represented attempts to secure distribution and went against the spirit of the Retail Distribution Review (RDR), which sought to remove such bias. Small firms ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA enforcement to become 'assertive, proactive and intrusive'

FCA enforcement to become 'assertive, proactive and intrusive'

‘You can expect the regulator to take robust action where needed’

Isabel Baxter
clock 29 February 2024 • 2 min read
FCA: 'Huge opportunity for firms to shape the advice sector'

FCA: 'Huge opportunity for firms to shape the advice sector'

Kate Blatchford-Hick calls on firms to embrace the regulator’s proposals

Sahar Nazir
clock 09 February 2024 • 2 min read
New era for workplace pension governance as TPR overhauls practices

New era for workplace pension governance as TPR overhauls practices

The regulator’s long-awaited general code of practice has been published

Hope Coumbe
clock 11 January 2024 • 1 min read