Secret Commissions & Financial Services - A Bitesized Guide

Introduction

Commissions can play an important function in the introduction and sale of financial products.

They are recognised by the FCA as a legitimate tool for regulated firms.

However, their use and application are strictly governed in the regulated sphere.

Outside the regulated perimeter, the use of commissions also needs to be considered very carefully; misapplied they can be the focus of (or give rise to) challenges, complaints and/or claims - which can result in the unpicking the sale of the product, including all the consequences this could bring.

In the most serious of cases, a finding of a ‘secret commission’ would amount to a finding of fraud or a common law bribe.

This short webinar is aimed at those selling or advising upon financial products and receipt or payment of commissions.

What You Will Learn

This webinar will cover the following:

• The legal approach in determining whether a commission has been paid and if it could be deemed unlawful or illegitimate
• The dividing line between secret and half-secret commissions
• The consequences should an unlawful or illegitimate commission have been made

This webinar was recorded on 23rd March 2023