Hospitality ‘meets FCA rules’

The 18-page finalised guidance from the regulator, recently questioned whether firms that offer services such as IT or consultancy assistance could be creating commission bias.

A spokesman for Legal & General said the company was confident its practices complied with “both the letter and spirit” of the new requirements.

Similarly, a spokesman for Standard Life said it did not expect to make any “material changes” to comply with the rules.

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The guidelines have already prompted Aviva to scrap all hospitality events for advisers. A spokesman for the firm said: “The FCA has issued guidance on its position on hospitality for distributors.

“Following this new clarification, we have decided not to host hospitality events for our life distributors.”

Friends Life and Aegon UK confirmed that the firms were reviewing their practices.

Adviser view

Keith Churchouse, director of Surrey-based Chapters Financial, said: “The focus on inducements falls into a general post-RDR trend to put transparency at the top of the agenda, whether through remuneration, fee-charging or hospitality.”