FG14/1 - Supervising retail investment advice: inducements and conflicts of interest

In September 2013, we consulted on guidance (GC13/5) on how payments made by providers to advisory firms under service or distribution agreements can breach Principle 8 (Conflicts of interest) and the COBS inducements rules, and so undermine the objectives of the Retail Distribution Review.

We have considered the responses and are now publishing finalised guidance, along with a summary of the feedback received.

Our guidance explains our concerns and why certain practices under service or distribution agreements are likely to create conflicts of interest and result in firms not acting in their customers’ best interests. Our guidance sets out a number of ways, but not the only ways, firms can comply with the relevant requirements in the FCA Handbook.

FG14/1: Supervising retail investment advice: inducements and conflicts of interest

FG14/1: Summary of feedback received