2017年-FCA英国金融行为监管局_thematic_review_inducements_conflicts_of_interest_4页_187kb

Regulator Assessment Summary: Qualifying Regulatory Provisions

Overview

The document outlines the findings and expectations of a thematic review conducted by the Financial Conduct Authority (FCA) on inducements and conflicts of interest in the context of retail investment advisers. The review was part of the FCA's ongoing supervisory role and aimed to assess compliance with existing rules rather than introduce new standards.

Key Details

• Title of Proposal: Thematic review – Inducements & Conflicts of Interest
• Lead Regulator: FCA
• Date of Assessment: 06/03/17
• Commencement Date: 25/06/15
• Origin: Domestic
• Scope: Applies to the whole of the UK
• Implementation of Cutting Red Tape Review: No
• Estimated Number of Affected Firms:
  • Financial advisers: 5730
  • Asset managers: 1840
  • Wealth managers: 230
  • Life insurers: 150
  • Investment Platform Providers: 30
  • Total: 7980

Core Content and Main Findings

The review identified several compliance issues across the affected firms, primarily related to:

• Non-compliant hospitality: Some benefits did not enhance service quality and were not properly justified.
• Poor record-keeping: Hospitality logs lacked sufficient detail, making monitoring and compliance difficult.
• Unjustified payments for training/educational material: Providers sometimes paid advisory firms more than the actual costs, potentially creating inducements.
• Lack of transparency in allowable benefits: MiFID firms did not clearly disclose the value of benefits provided to clients.

The FCA emphasized that these findings are based on the existing regulatory requirements, particularly COBS 2.3.1R (2b (ii)) and SYSC 9.1.1R, which govern the provision of non-monetary benefits and record-keeping in financial services.

Cost Estimates

Familiarisation Costs

• Estimated reading time: 8 minutes per firm
• Cost per hour: £48
• Total estimated cost: £51,000

GAP Analysis Costs

• Estimated time per firm: 6 hours
• Cost per hour: £48
• Total estimated cost: £2.3 million

Remediation Costs

• The FCA states that no additional costs are incurred because the expectations are already embedded in existing rules.
• Compliance with the regulations is assumed as part of the Enterprise Act, so any costs to align with the current standards are not included in the estimate.

Total Estimated Cost to Business

• £0 (as remediation costs are considered inherent to existing compliance obligations)

Additional Information

• The cost estimates assume that compliance activities are carried out by experienced compliance staff at an estimated rate of £48/hour.
• This rate is based on the 2016 Robert Half salary guide, which estimates compliance managers in London earn between £70,000 and £104,000 annually.
• The BIT score for the policy is 1.5, indicating a relatively low burden on businesses.

Supporting Documents

• Robert Half Salary Centre 2016
• EFTEC (2013), “Evaluating the cost savings to business from revised EA guidance – method paper”

Summary of Regulatory Expectations

The review reinforces the importance of:

• Ensuring that non-monetary benefits are only provided if they enhance the quality of service to the client.
• Maintaining adequate records of all benefits and ensuring they are kept for at least five years.
• Disclosing the value and nature of benefits to clients to ensure transparency and informed decision-making.
• Avoiding profit-driven payments for training or educational materials, which could constitute inducements.

The FCA is reminding firms of their existing obligations rather than imposing new ones, with the goal of improving compliance standards and client awareness.