FCA discovers breaches by advisory firms
The Financial Conduct Authority has found that half of the firms that it has reviewed as part of a report into inducements between advisers and providers have breached Principle 8 regarding conflicts of interest.
The FCA review highlighted areas of serious concern and a ‘poor management culture’ in some firms, whose actions have been found to undermine the rules of the Retail Distribution Review (RDR).
The FCA have written to a sample of advisory firms and life insurers to set out its concerns regarding the underminding of the RDR.