Spotlight on inducements: How much transparency is enough?

INDUCEMENTS

Carmen Reichman
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The FCA has made it clear that shady deals creating favourable treatment between advisers and providers are not acceptable. But, Carmen Reichman asks, should it be asking for greater transparency?

The regulator has cracked down on inducements, making it very clear in its guidance paper that back-door deals reminiscent of the old commission model have no place in the advice industry post-Retail Distribution Review (RDR). Reviving its old set of inducement rules, which span from conflict of interest to business conduct rules, the Financial Conduct Authority (FCA) outlined how advice firms could not accept services or payments that would influence the amount of business created between them and their provider. In its paper, the FCA emphasised that the responsibility for controllin...

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