The Financial Conduct Authority (FCA) has issued a fresh warning about payments from providers to advisers over and above the costs incurred for training or educational material, in an update to its ongoing work on inducements.
It said services delivered to investment advisers by retail investment firms were not always designed to enhance the quality of service to the client - a key requirement in the FCA's inducement rules. The FCA noted hospitality provided or received by firms, such as concerts, golf and tennis events, did not always appear to be designed to enhance the quality of service to the end-client. It reminded firms that in providing or receiving a non-monetary benefit they should consider and assess whether it is in the client's interest. This would include the location and nature of the venue, ...
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