Continuation of non-monetary benefits to advisers could subvert the basic principles of the retail distribution review (RDR), according to the Wealth Management Association (WMA).
In its response letter to ‘GC13/5 Supervising retail investment advice: inducements and conflicts of interest’, the association said that provision of reasonable non-monetary benefits (RNMBs) is an unsuitable alternative to commission, reported investmentweek.co.uk.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
WMA regulation director Ian Cornwall was quoted by investmentweek.co.uk as saying, "The WMA is concerned that the practices discovered in the course of the FCA’s thematic supervision work have the potential not only to undermine the basic objectives of the RDR but, if not tackled head-on, will eventually lead to this major project being deemed to have failed."
In its September paper, the Financial Conduct Authority (FCA) emphasized joint venture deals between providers and advisory services to set up a new investment proposition.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
