Support services provider Threesixty has urged adviser networks and rival support services firms to come clean over the marketing payments they receive from providers as the FCA prepares to impose a “cost only” rule.
In March, Money Marketing revealed the regulator was planning to ban adviser firms from making a profit from provider payments for services such as training, conferences and seminars due to concerns the deals could be used to secure distribution.
The FCA is also investigating ways of ensuring support services firms are brought under the new rules.
The regulator is understood to be preparing enforcement action against at least one adviser firm over inducements.
Threesixty managing director Phil Young says his firm expects to receive £400,000 in payments for training and events from 17 different providers. He says Threesixty makes no profit from the arrangements.
Young says: “We make no profit from the events, all we do is calculate the total cost of promoting, organising and running the event on the day and split this cost between presenters.
“We provide a breakdown of activities to show where the spend goes. If others are comfortable with the payments they receive, I can’t see any reason why they wouldn’t disclose information at a similar high level.”
Sense commercial director Steven Young says the firm would only consider disclosing the figure if large networks agreed to do so too.
He says: “I am not saying that we wouldn’t publish these figures but I would want to see others going public as well.
“If firms like Sesame Bankhall and SimplyBiz were prepared to do it then clearly we would want to be a part of that, but we would want to make sure payments were disclosed in a form which was comparable.”
Sesame, Lighthouse and SimplyBiz were all unavailable for comment.
An FCA spokesman declined to comment.