Thu. Jun 20th, 2019

Planet Compliance

Innovation & Regulation in Finance

FCA reports on inducements and conflicts of interest thematic review

2 min read

The FCA today published its key findings from the 2015 thematic review about benefits provided and received by firms conducting MiFID business, and those carrying out regulated activities in relation to a retail investment product.

Among the key findings were:

  • Hospitality provided or received did not always appear to be designed to enhance the quality of service to the client.
  • Hospitality that is not designed to enhance the quality of service to clients is offered in connection with other benefits that do meet the requirements.
  • Hospitality logs did not always record relevant detail or were not well maintained.
  • Advisory firms incur costs when facilitating training or educational material supplied by product providers.
  • MiFID firms were not providing clients with an indication of the value of allowable benefits provided.

The FCA also outlined its expectations in respect of the findings, which can be found along with the full FCA statement here.

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