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ABI comments on the FCAs finalised guidance on inducements

The FCA has today (January 16, 2014) published finalised guidance on inducements for product providers and advisory firms.

James King, Head of Conduct Regulation at the Association of British Insurers, said:

"The ABI supports the FCA’s objective of tackling any bad practice that undermines the Retail Distribution Review.

"The finalised guidance on inducements makes it clear that financial advisers and product providers share the responsibility of managing potential conflicts of interests when receiving and making payments under service and distribution agreements.

"However, we are surprised the FCA has used this guidance to introduce a significant new restriction on payments for services provided by distributors (such as management information on customer behaviour).  This may raise practical and commercial challenges for adviser and provider firms, and could make it difficult to pay for services that ultimately benefit consumers."

Read the guidance on the FCA website.

Last updated 01/07/2016