Major fund groups map out strategy on inducement rules

Some of the UK's leading fund groups are understood to be holding talks about their relationships with intermediaries and other partners following the release of new FCA rules.

In January, the regulator published new inducement rules governing payments from fund groups to partners such as advisers, wealth managers, and platforms. Among the rules, the FCA made it clear hospitality events paid for by companies have to be located within the UK, while attendance at such events cannot be determined by volumes advisers direct to groups’ funds, for example. While the FCA has pursued its usual route of giving guidance rather than prescribing strict rules, it also stipulated events must be designed for business purposes, such as product training for advisers to help ...