UK regulator may censure two firms for breaching new selling rules
LONDON, Sept 18
LONDON, Sept 18 (Reuters) - British regulators may take action against two firms after uncovering potential breaches of new rules on offering inducements to financial advisers selling products.
The Financial Conduct Authority (FCA) said on Wednesday it had identified potential rule breaches in a review of the retail investment advice sector.
Britain launched a shake-up of how financial products are sold to retail investors at the start of 2013, banning commission based sales.
The FCA's review found some life insurance firms still have arrangements in place that could amount to sweeteners that give incentives to financial advisers selling products.
"The changes we made to the retail investment advice sector were designed to mark a step change in the way advice was given, said Clive Adamson, the FCA's director of supervision.
"The findings of this review reveal that the actions of some firms have the effect of undermining the objectives of the RDR (Retail Distribution Review)."
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