The Financial Conduct Authority's (FCA) proposal to totally ban inducements within the financial services profession could ultimately hurt consumers, the Chartered Institute for Securities & Investment (CISI) has warned.
In its response to the regulator's consultation on the Financial Advice Market Review (FAMR), the body raised concerns relating to the proposals on banning inducements and its proposals on qualifications. In the consultation, the FCA proposed banning firms that provide personal recommendations on retail investment products from soliciting or accepting inducements, but the CISI said an outright ban on inducements is likely to have "unintended consequences". The body said: "While extravagant hospitality gifts and monetary inducements are clearly unacceptable, the banning of inducements ...
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