FPCOB 2.2 Inducements

1Principle 8 requires a firm to manage conflicts of interest fairly, both between itself and its customers and between a customer and another client. This principle extends to soliciting or accepting inducements where this would conflict with a firm’s duties to its customers. A firm that offers such inducements should consider whether doing so conflicts with its obligations under:

1. (a)

   Principles 1 and 6 to act with integrity and treat customers fairly; and

2. (b)

   the customer’s best interests rule.

An inducement is a benefit offered to a firm, or any person acting on its behalf, with a view to that firm, or that person, adopting a particular course of action. This can include, but is not limited to, cash, cash equivalents, commission, goods, hospitality or training programmes.

Firms should also refer to the rules on charging for funeral plan distribution and payments to funeral plan intermediaries (FPCOB 6.4 and FPCOB 6.5).