Smoke and mirrors: Have firms done enough to comply with FCA inducement rules?

Have firms done enough to comply with FCA rules?

Carmen Reichman
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The FCA gave firms fair warning over its provider/adviser inducement crackdown. The three-month lead in has now passed. Carmen Reichman finds out what, if anything, has changed…

The start of 2014 brought a fresh assault from the Financial Conduct Authority (FCA) on perceived ‘sweetners' between advisers and providers. The regulator issued a guidance paper on ‘inducements' between life insurers and advisory firms in January, saying it wanted firms to sort their policies out within three months of its publication - that meant 16 April. The regulator was clear: payments flowing from providers to advisers are not tolerated if they threaten to influence the advisers' decision making on products sold to their clients. What's more, advisers and providers are equa...

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