FCA confirms ban on DFM referral payments

In its policy statement, the regulator said advisers could not receive a separate referral payment from a DFM where a client already with that DFM simply invested new money. Payments from DFMs to advisers for introducing new clients will be banned as part of the package of measures introduced following RDR, though pre-RDR payments can continue. The FCA also banned referral payments to advisers who do not provide personal recommendations to the introduced clients, but to whom they may be providing other services, such as market research reports. The rules, which are part of the RDR,...