Providers have held talks with the regulator to hammer out which types of events advisers must pay for under the FCA’s inducement rules.
The regulator’s final guidance on inducements, published in January, said providers can contribute to the cost of a conference or seminar organised by an adviser firm but the adviser must pay the majority of
Speaking at the PIMS conference, owner and chief executive of the Financial network Charlie Palmer suggested that last week’s event could be the last PIMS conference after the FCA’s inducements crackdown. Palmer, also chief executive of IFA Compliance, said distributors have to pay 51 per cent of event costs where there is joint marketing, inc-luding training, seminars and corporate hospitality.
Following discussions with the regulator, the Association of British Insurers says advisers must pay the majority of costs for all conferences and seminars, not just those organised by an adviser. A spokeswoman says: “The ABI has regular meetings with the FCA, which have included us asking questions on inducement costs. The FCA has said costs of conferences and seminars should in the majority be paid for by advisers.
A spokesman for the FCA says: “We have been liaising closely with the industry since our review and now it is for firms to make sure any payments, hospitality or gifts are legitimate, are in consumers’ interest and that potential conflicts are well managed.”