View more on these topics

FCA drops Partnership inducements investigation

The FCA has discontinued its investigation into whether Partnership struck a distribution deal with an advice firm which undermined the RDR.

Partnership announced last September that the regulator had appointed investigators to analyse the deal.

The statement came after the FCA revealed two firms could face enforcement action after a review which found arrangements between providers and advice firms which could go against the RDR.

The thematic review examined 80 agreements and found just over half of the firms had deals in place which could breach inducement rules.

But in a statement to the stockmarket this morning, Partnership chief executive Steve Groves says: “I am pleased to report that after over a year, the FCA has concluded its investigation and that no further action will be taken. As we said at the time of being notified of the investigation, we are supportive of the principles of the RDR, confident that our distribution agreements are compliant with the FCA rules and remain committed to acting in the best interests of our customers.”

Last year Money Marketing revealed Openwork could receive more than £15m from Partnership under the terms of a controversial single-tie annuity deal.

Partnership also has a distribution relationship with Sesame, alongside a number of other adviser firms.

It is not known which other firm the FCA is investigating as part of its review into distribution deals, or what stage the investigation is at.

The FCA confirmed it had concluded its investigation into Partnership but declined to comment further.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Another day another firm under needless FCA spotlight for a year. How long can this sort of investigation take surely a month or two at worst. Yet after blight on a business causing unnecessary concern for a whole year then the FCA discontinues without comment. The needless damage these high & heavy handed posers cause…

  2. Typical industry funded quango, waste all our money and never accountable to anyone.

  3. the elephant in the room 27th October 2014 at 5:56 pm

    Of course! Turns out it was perfectly fine for Partnership to offer a humungous financial incentive to a Network for sole distribution when the RDR was supposed to stop that kind of horse trading.

    At least it put Openwork into the black for the first time ever!

    Still, what could we expect from a regulator that allows SJP to still pay commission and whose members often promote themselves as IFA’s (and yes citations can be provided!).

    It’s not what you know…..

  4. the elephant in the room 27th October 2014 at 7:48 pm

    Of course! Turns out it was perfectly fine for Partnership to offer a humungous financial incentive to a Network for sole distribution when the RDR was supposed to stop that kind of horse trading.

    At least it put Openwork into the black for the first time ever!

    Still, what could we expect from a regulator that allows SJP to still pay commission and whose members often promote themselves as IFA’s? And yes citations can be provided!

    It’s not what you know…..

  5. the elephant in the room 27th October 2014 at 10:31 pm

    Of course! Turns out it was perfectly fine for Partnership to offer a humungous financial incentive to a Network for sole distribution when the RDR was supposed to stop that kind of horse trading.

    At least it put Openwork into the black for the first time ever!

    Still, what could we expect from a regulator that allows SJP to still pay commission and whose members often promote themselves as IFA’s? And yes citations can be provided!

    It’s not what you know…..

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com