The Financial Conduct Authority has discontinued its investigation into a suspected inducements in a distribution agreement between Partnership and an advisory firm.
According to the annuity provider, no enforcement action will be taken following the regulator’s probe of two firms which were referred to its enforcement division last September for potential rule breaches over conflicts of interest.
At the time, Partnership said in a statement: “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 move followed the FCA’s thematic review into deals between providers and advisers that could undermine the Retail Distribution Review’s primary principles.
This morning (27 October) the life assurance subsidiary of Partnership Assurance Group stated that the investigation had ceased and no further action would be taken, although it made no other mention of the other firm, or what other action has been taken.
Steve Groves, chief executive at Partnership, said: “I am pleased to report that after over a year, the FCA has concluded its investigation and that no further action will be taken.
“As we said at the time of being notified of the investigation, we are supportive of the principles of the RDR, confident that our distribution agreements are compliant with the FCA rules and remain committed to acting in the best interests of our customers.”
peter.walker@ft.com
