The FCA has published Policy Statement 14/1: Distribution of retail investments: referrals to discretionary investment managers and adviser complaints reporting (PS14/1).
In PS14/1 the FCA is publishing final rules on the first of two proposals consulted on in Consultation Paper 13/4: Distribution of retail investments: referrals to discretionary investment managers and adviser complaints reporting:
- banning new referral payments by a discretionary manager (DIM) to an adviser when the adviser recommends that a client places additional money with the same DIM from whom they receive payments following pre-RDR referral;
- banning referral payments where an adviser firm does not provide personal recommendations to particular clients, but provides other services to them; and
- minor amendments to the FCA rules requiring complaints against individual advisers to be reported to us, to match the policy intention that complaints concerning activities when acting as a retail investment adviser should also be included.
In PS14/1, the FCA reports that respondents broadly supported its proposals for both referral payments and complaints reporting. The FCA has not made any changes to the rules it consulted on for referral payments.
The rules banning new referral payments come into force on 31 December 2014. The FCA’s intention is that the rules on complaints reporting should come into force in June 2014.
The FCA has not published final rules on the third proposal, as the changes need to coincide with an update to text in Gabriel, which is scheduled for June 2014.
View Policy Statement 14/1: Distribution of retail investments: referrals to discretionary investment managers and adviser complaints reporting, 31 January 2014
