FCA tightens net on adviser inducements in final guidance

Advisers and providers share the burden of responsibility for managing potential conflicts of interest, the Financial Conduct Authority (FCA) said in a guidance paper out today.

The finalised guidance on inducements outlined that both parties are equally liable for inducements in receiving and making payments under service and distribution agreements. It stated payments from product providers to advisory firms should be "based on reasonable reimbursement for the costs incurred by advisory firms". It added any such payments "should always enhance the quality of service provided to customers". In the paper, the FCA lays the foundation to act before any conflict of interest is detected. "We are concerned with both potential and actual conflicts," the FCA s...