What's on my mind

Don’t forget inducements

3rd October 2016

In January 2014 the FCA issued Finalised Guidance 14/1: Supervising retail investment advice: inducements and conflicts of interest. This explained their concerns and why certain practices are likely to create conflicts of interest and result in firms not acting in their customers’ best interests. They said we would consider further action if we found continuing issues.

In April 2016, the FCA published their key findings from the 2015 thematic review about benefits provided and received by firms conducting MiFID business, and those carrying out regulated activities in relation to a retail investment product.

The key findings were:

The message from the FCA is clear: firms should consider these findings and expectations and ensure they meet the current requirements. Also, the policy followed should be consistent and apply to everyone in a firm not just some categories of employee.

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