While acknowledging that there will always be times when accusatory fingers can and will be pointed, rather like mine is above, some element of what most would consider normal commercial practices should be encouraged.
The FCA’s current view would have many believe that there are some questionable dealings taking place at corporate events. But while the link between inducements and hospitality was an issue in the commission-driven world, the same thing cannot be said post-RDR.
The FCA needs to recognise advisers and providers have a grown-up relationship that is underpinned by the ‘obligation’ as outlined by COBS guidance on inducements, that a firm must, ‘act honestly, fairly and professionally in accordance with the best interests of its clients.’
However, should the FCA continue to pursue its current route, just where will it end in the interest of fairness? Will we see all corporate entertainment be declared illegal? Businesses have been given three months to comply with the new guidance.
Derek Bradley is founder and chief executive of Panacea Adviser
