French AMF Guidance on Best Practices Regarding Rebates and Inducements in the Marketing of Financial Instruments

September 27, 2013

Pursuant to the market practice in France, distributors – such as investment service providers or financial advisors – are not paid directly by investors but rather receive a rebate or inducements from the issuer of the financial instrument (e.g., the manager of the fund when dealing with UCIs). This practice raises potential conflict of interest issues, as distributors might offer advice favoring investments in a product because of the rebates to be received and not due to the inherent features of the product at hand.

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