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FCA prepares guidance on provider marketing allowances
by Jun Merrett on Aug 19, 2013 at 12:33
The Financial Conduct Authority (FCA) is set to publish guidance on what marketing allowances it will allow providers to pay advice firms in September.
The regulator will release a guidance publication for consultation, listing what providers can and cannot pay for.
A FCA spokesman said: 'We will be issuing guidance for consultation next month but we're not going to go into the full scope of the guidance now.'
In October 2012, the FCA sent 24 life companies and networks a 'Dear CEO' letter warning them not to work around the retail distribution review's commission ban through distribution agreements.
In the letter, FCA supervision director Nick Poyntz-Wright said the regulator would scrutinise any payments passed from providers to advice firms, such as marketing allowances, to make sure they were not serving as a replacement for commission.
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