Don't be inventive about compliant incentives: FCA issues guidance on inducements

26 May 2016

Over the past few years, the regulator has carried out a number of thematic reviews on the subject of inducements and conflicts of interest.

In short, their stance has been that any payment - or other benefit which is paid or received - must enhance the quality of the service to the client. In the reports following previous reviews, the outcomes were expressed as high level principles. However, in the most recently published update, further guidance has now been added which sets out specific expectations on various types of activities. These expectations are set out below and it’s important that you consider where you have to manage any future conflict of interest or implement any changes to your existing processes.

Hopefully having more detail on the regulator’s expectations regarding incentives will help you put a definite structure in place to ensure you’re fully compliant when it comes to incentives.  

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