Inducements: Separating right from wrong

How to stay on the right side of the regulator

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Janice Laing, business director at Compliance First, sets out the guidelines on how to avoid conflicts of interest in the regulator's eyes

In January, the Financial Conduct Authority (FCA) published finalised guidance regarding inducements and conflicts of interests relating to retail investment firms, following the guidance consultation published last September. The paper reminds firms that one of the key objectives of the Retail Distribution Review was to remove the potential for remuneration paid to intermediary firms by product providers distorting the advice that consumers receive. The regulator's expectations are that providers must compete on price and quality to secure distribution, and advisory firms should not ...

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