Product providers are not allowed to provide 'inducements' to intermediary firms in return for secure distribution deals, says the FSA.
Recent suggestions surfaced within the industry indicating firms were offering and seeking inducements for distribution deals. However, Chapter 2 of Reforming Polarisation: Implementation - Feedback on CP04/3 (A menu for being open with consumers) and made text says the FSA has now written to firms pointing out they consider the practice "to be incompatible with our consumer protection standards" and do not fall within the list of accepted indirect benefits, as set out in COB Ch. 2. Similarly, the FSA has clarified rules on investment in intermediary firms and the circumstances in w...
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