LONDON--The U.K. Financial Conduct Authority, or FCA, said
Wednesday some life insurance and advisory firms had arrangements
in place which could influence advisers, contrary to the Retail
Distribution Review's aim of removing commission bias in financial
advice.
MAIN FACTS:
-Many of the firms involved in the review to find out whether
firms continue to be influenced by inducements from product
providers have now changed their arrangements as a result of early
action by the FCA.
-Two firms have been referred to enforcement in specific cases
where the FCA identified potential rule breaches.
-The Retail Distribution Review, or RDR, came into force on Dec.
31, 2012 and made significant changes to the investment advice
market; it made clear how much consumers pay for financial advice,
what they pay for, and improved professional standards by
introducing a minimum level of qualification for all investment
advisers.
-FCA asked 26 life insurers and advisory firms to provide
information about their service or distribution agreements; in
total it received and reviewed 80 agreements.
-Guidance consultation is open until Oct. 18.
-Write to Ian Walker at ian.walker@wsj.com
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