Partnership has confirmed speculation that it is one of the two firms that have been referred to enforcement by the Financial Conduct Authority following the regulator’s review into ‘inducements’.
In a statement to markets this morning, the group, which was listed by its private equity-backer Cinven earlier this year, said the FCA was investigating a distribution agreement with “one advisory services firm”.
The firm added that prior to the Retail Distribution Review coming into effect it had reviewed its distribution agreements, including “taking independent legal advice on the agreement under investigation”.
Partnership said that the investigation by the regulator does not mean that rule breaches have been determined and said it would cooperate fully with the FCA.
On 18 September, the Financial Conduct Authority revealed that two firms have been referred to its enforcement division for potential rule breaches, in a paper in which it levelled broader criticism at providers and advisers over conflicts of interest ranging from provider hospitality and training to commercial arrangements such as adviser firm panels.
Since then speculation has been rife as to who the firms were, with FTAdviser sister title the Financial Times stating that a source close to the regulator had identified Partnership.
In a statement, Partnership said: “As part of its RDR programme, PLACL [Partnership Life Assurance Company Limited] undertook a review of its distribution services agreements to ensure that they remained compliant under the new rules. This included taking independent legal advice on the agreement under investigation and other significant distribution services agreements.
“PLACL is fully aware of its obligations under the rules and is supportive of the principles underpinning RDR. The company remains committed to act in the best interests of its customers.
“The company welcomes the opportunity to engage with the FCA in respect of this particular agreement and will cooperate fully with the investigation. A further update will be provided as appropriate.”
