The Financial Conduct Authority (FCA) has issued a fresh warning about payments from providers to advisers over and above the costs incurred for training or educational material in an update to its ongoing work on inducements.
The regulator said it had found services delivered to investment advisers by retail investment firms were not always designed to enhance the quality of the service to the client - a key requirement in the FCA's inducement rules. The FCA had carried out a thematic review of the benefits provided and received by firms falling under the Markets in Financial Instruments Directive (MiFID) rules. The work followed its finalised guidance on inducements released in January 2014, which outlined the FCA's concerns about why certain practices are likely to create conflicts of interest and result...
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