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PDCOB 2.4 Inducements

PDCOB 2.4.1R

1A firm must not pay or accept any fee or commission, or provide or receive any non-monetary benefit, unless the payment or acceptance of the fee or commission, or provision or receipt of the non-monetary benefit, would not impair compliance with the firm’s duty to act in accordance with the customer's best interest rule.

PDCOB 2.4.2G
  1. (1)

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

    1. (a)

      Principle 1 to act with integrity;

    2. (b)

      Principle 12 to act to deliver good outcomes for retail customers; or

    3. (c)

      the customer’s best interests rule.

  2. (2)

    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.

  3. (3)

    Firms should also refer to the rules on charging for the qualifying pensions dashboard service and post-view services (PDCOB 2.5 and PDCOB 12.4.1R to PDCOB 12.4.3R).