ICOBS 2.3 Inducements

(1)

 Principle 8 requires a firm to manage conflicts of interest fairly, both between itself and its customers and between a customer and another client. This principle extends to soliciting or accepting inducements where this would conflict with a firm's duties to its customers. A firm that offers such inducements should consider whether doing so conflicts with its obligations under:

1. (a)

    Principles 1 (to act with integrity), 6 (to treat customers fairly) and 12 (to act to deliver good outcomes for retail customers); and

2. (b)

    the customer’s best interests rule.

(2)

 An inducement is a benefit offered to a firm, or any person acting on its behalf, with a view to that firm, or that person, adopting a particular course of action. This can include, but is not limited to, cash, cash equivalents, commission, goods, hospitality or training programmes.