Marketing fees not allowed under the ban on inducements

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Marketing fees that can be designated as commission are not allowed. This applies to both the ban on inducements for investment firms and for the ban on inducements for financial service providers.

Payment of fees to investment firms or financial service providers by providers of financial and investment products for marketing activities creates an economic dependence. This may lead to the adviser/broker or the investment firm being influenced in its choice of product.

Marketing fees and investment firms

The ban on inducements for investment firms has been in effect since 1 January 2014. Marketing fees that are paid by providers of investment products and investment services to investment firms cannot be considered separately from the investment services provided by the investment firm. 

Marketing fees paid to investment firms can have an unwanted influence on the investment decision and advice issued to clients. The ban on inducements was introduced to stop such constructions. Its aim is to create transparent, competitive, efficient and sustainable services for investors and market players in which the interests of the client are the central focus in every respect.

For further information, we refer you to the questions and answers that have been drawn up with respect to marketing fees for investment firms.

Marketing fees and financial service providers

The ban on inducements for financial service providers has been in effect since 1 January 2013. It is not allowed under this ban on inducements to receive or pay commissions for advice on or intermediary services with respect to high-impact products. A marketing fee that concerns advice and/or intermediary activities on the part of the adviser is consequently not allowed, irrespective of the name the parties wish to give to the payment. 

For example, if a provider pays an adviser for a product banner on the adviser's website, such as invalidity insurance, and the adviser provides intermediary services with respect to this product from the provider, such constitutes a banned marketing fee.

The AFM is committed to promoting fair and transparent financial markets.

As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.

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