Financial Conduct Authority discovers that insurers are ‘offering inducements’ to advisers

The Financial Conduct Authority (FCA) has found that some life insurance firms are breaking the rules by offering “inducements” to independent financial advisers. The FCA said it has found evidence that some firms had been making payments to “secure sales of their products”, such as life policies or retirement annuities. As of January this year, all commission payments between advisers and financial providers were banned. However, inducements were outlawed even before that. The FCA is concerned that some customers may have been given advice that was not in their best interests. Two firms are now being investigated, for possibly breaching the rules and the regulator is also working on publishing guidance on how firms should behave. Clive Adamson, the FCA’s director of supervision, said “We will revisit this area in future to check that necessary improvements have been made.” The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with employment solicitors in Rainham and across the country.