FCA finds adviser-provider conflict of interest breaches in half of firms sampled

Laura Miller
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The Financial Conduct Authority (FCA) has found breaches to Principle 8 regarding conflicts of interest in half of the firms it reviewed as part of a report into inducements between advisers and providers.

The results of the FCA's thematic review highlighted "serious concerns" and a "poor management culture" in some firms whose actions have the effect of undermining the objectives of the Retail Distribution Review (RDR), the regulator said. The regulator found a positive correlation between the level of payments made by life insurers to advisory firms and placement on their advice panels. As part of its review, the FCA wrote to a sample of life insurers and advisory firms setting out its concern that some firms may be trying to undermine the RDR rules. In particular, it was concerned...

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