View more on these topics

FCA sets out how providers tried to buy distribution

The FCA has set out the kind of arrangements between providers and advisers it is concerned about following its thematic review into inducements.

In its guidance consultation, published last week, the regulator set out examples of agreements which could have breached FCA rules.

The FCA cited one advice firm that secured substantial payments from a number of life insurers for providing support services such as promoting their products and arranging training events. These insurers, and only these insurers, were chosen for the advice firm’s investment panel.

One insurer “significantly increased” its spending on support services offered by an advice firm with little justification of the business benefit or the amount paid. The terms of the agreement provided for a sizeable increase in services bought over the following years.

Another example related to a provider and advice firm who planned to set up a joint investment venture. Under the terms of the venture, the provider would have paid a substantial upfront payment to the advice firm, with the advice firm getting a greater share of the profits, which also increased with the level of business channelled to the joint venture.

The FCA questioned whether the advice firm could be considered as independent as a result of recommending funds it had a role in manufacturing, and prevented the venture from going ahead.

The regulator says any firms considering such joint ventures should discuss these plans with the FCA. 



‘Watch this space’: Labour signals further pensions tax relief reforms

Shadow pensions minister Gregg McClymont has signalled Labour will propose reforms of pensions tax relief before the next general election. Speaking at the Labour party conference in Brighton today, McClymont said the debate on the future of pensions tax relief will continue and to “watch this space” for Labour’s proposals. Earlier this year, the Pensions […]


IMA: Labour fund tax plans will cost savers £145m a year

The Investment Management Association has warned Labour proposals to re-introduce the ‘Schedule 19’ tax paid by UK-based funds would cost savers and investors £145m a year. Speaking at the Labour party conference in Brighton at the weekend, Ed Miliband pledged to scrap the so-called “bedroom tax”, a reform to housing benefit which came into force […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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 thought leadership.

    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