CIPR 5.1.5 General obligation — benefits from third parties
(1) If an authorised firm that provides investment management or investment advice services holds itself out as being independent, it must not retain any fees, commission, or monetary or non-monetary benefits from a third party. If the firm receives such a benefit, the firm must pass the benefit on to the relevant customer, in full, as soon as possible after receiving it.
(2) Subrule (1) does not prevent such a firm from retaining a minor non-monetary benefit. However:
(a) the firm must not allow such a benefit to impair the firm's duty to act in the best interests of its customers;
(b) the benefit, if retained, must be used to improve the firm's service to its customers; and
(c) the firm must inform its customers of the benefit and that the firm has retained it.
(3) Research is not a benefit for the purposes of this rule if the firm itself pays for the research out of its own resources or by way of a specific research charge to the relevant customer.
|Derived from QFCRA RM/2019-2 (as from 1st January 2020).|