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Frequently asked questions ban on inducements for investment firms - Lead commissions

Frequently asked questions - Ban on inducements for investment firms - Lead commissions

What are lead commissions?

Lead commissions are payments made by an investment firm for the referral of investors. An example of a lead commission is the payment made by an investment firm to a person who introduces an investor to the investment firm.

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Will all lead commissions be banned?

The ban on inducements covers lead commissions paid or received by an investment firm in relation to the provision of investment services or ancillary services to a particular investor. Send this question

What are the consequences for persons referring investors, such as introducing brokers?

Introducing brokers and other referring parties may no longer receive a fee from investment firms for the referral of an investor. This means that the focus will have to be on other activities for which direct fees can be charged to investors. Send this question