View more on these topics

What advisers are saying: Inducement rules are turning off advisers

The lack of clear examples from the FCA means the regulator’s rules on inducements are rapidly cooling adviser interest in the provider-sponsored conferences and events

Phil-Wickenden-MM-Peach-700.png

“Dear Steve,

You are cordially (but professionally) invited (well actually, you’ll have to pay for half of it) to attend our forthcoming conference on tax planning (and please, Steve, extinguish any previous association you may have with the word ‘conference’. This is, I assure you, nothing of the sort). 

”To elaborate (and by this we mean provide extra hard facts, rather than anything more extravagant) on the previous bracketed explanation, we can confirm that any idle pleasure you may have enjoyed at previous events (tut tut, Steve, did the clients benefit from your titillation?) will have no place at this strictly business affair.

“If you would like to attend, we have enclosed a client benefit consideration form for you to complete to ensure that nothing, save the client’s best interests, is at the heart of this decision. Before returning this form to us, Steve, please remember that you will only be cheating the client and, ultimately, yourself if a full disclosure of your motivations is not provided. We won’t be angry; more disappointed. There is, though, no legislating for how your regulator may respond as at this stage they prefer to not offer any more clarity on the matter.

“You will be required to present a signed copy of this document at the door on the morning of the event where our head of fun police will take this, and your general countenance (dark attire and solemn mood are recommended), into consideration before permitting your entrance. Note that trousers that are unduly tapered may be taken as a sign of your intent to carry excessive swagger into the proceedings, which may, in turn, divert the focus of others in the room from our raison d’etre – better client outcomes.”

Some party! Welcome to the new world. 

Many want more specific examples of acceptable practice for things such as training, hospitality and gifts, all of which the regulator stopped short of giving in its paper on inducements. But the FCA says it will not issue further guidance. 

The problem that this throws up is that when offering or accepting any invitation, all parties need to evaluate any conflict of interest. Without greater clarity and with the spectre of being judged retrospectively to have transgressed, it is safer to stay away. And many are.

Will this help create better outcomes? I don’t know – but it will certainly make the world a slightly duller place.

Phil Wickenden is founder of So Here’s The Plan – phil@soherestheplan.com  and @PhilWickenden

What advisers are saying-29May14

Recommended

Saunderson House allocation

Saunderson House boosts property exposure for UK recovery play

Saunderson House investment director Chris Sexton has been increasing the advice firm’s exposure to property within its core model portfolios on the belief the UK economic recovery has taken hold. It moved into equities “aggressively” in 2012 and has since enjoyed the upside from these weightings. But Sexton is now looking for additional ways to play the […]

1

Robert Sinclair: Lenders should be ashamed on affordability

A good mortgage professional should understand the complex range of lenders and their mortgages and by establishing the true facts about a customer and their needs, marry the two to produce a  solution. This has recently become a lot harder because of the way some lenders have chosen to interpret the new affordability rules. Intermediaries are […]

Financial advice-planning-advice-cashflow-analysis

Compliance tip of the week: If in doubt, treat it as a complaint

If you are not sure whether a customer has complained about you, report the matter urgently to your professional indemnity insurers and treat the matter as a complaint. If you do not, your insurer can deny coverage if it turns out that the case is a complaint. The customer can always go directly to the […]

George-Osborne-BW-700.jpg
5

‘More damaging than Maxwell’: Experts warn Osborne over Budget guidance risks

Pensions experts have warned Chancellor George Osborne his political legacy will be put at risk if his Budget guidance guarantee fails to protect savers from product provider misselling. The Chancellor’s pledge that everyone will receive “free, impartial, face-to-face guidance” on their retirement options from April next year has divided the industry. The argument centres on […]

Managing customers in drawdown

By Lorna Blyth, Investment Marketing Manager Delivering a decent drawdown review process takes time and resources. This article looks at how you can manage drawdown clients in a more cost-effective way. Most advisers are seeing an increase in drawdown clients following pension freedoms. Often these are clients with lower fund sizes, which means advisers are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    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