CIPR 3.5.10 Soft commission agreements
(1) An authorised firm must not enter into a soft commission agreement (that is, an agreement under which an authorised firm receives goods or services, in return for which it agrees to direct business through or in the way of another person) unless the agreement is recorded in a durable medium.
(2) The following conditions apply to such an agreement:
(a) any business transacted under it must not conflict with the best interests of customers;
(b) if the firm considers that a customer may be affected by the agreement, the customer must be made aware of the agreement and of how it may affect him or her;
(c) a copy of the agreement must be given to any customer who asks for it;
(d) goods or services received by the firm under the agreement must be used to provide services to customers;
(e) if the firm changes its policy on such agreements, the firm must give any affected customer details of the change promptly after the change takes effect.
|Derived from QFCRA RM/2019-2 (as from 1st January 2020).|