Distributor influenced funds: A compliance lowdown

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DIFs have been nudged back under the regulatory spotlight following a new conflict-of-interest warning last week, so what should advisers be looking out for?

There seemed little obvious reason for trade body TISA to commission a report into distributor influenced funds, but its findings, far from being ignored, have again raised serious issues around recommending the products. The independent report called for some firms to modify their processes or adopt stronger controls in order to limit bias and conflict of interest issues arising from sale of the funds. DIFs are funds typically structured as Open Ended Investment Companies (OEICs) where the distributor exerts a measure of control over the fund design and management. The conflict of...

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