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Frequently asked questions ban on inducements for investment firms - Kick back fees

Frequently asked questions - Ban on inducements for investment firms - Kick back fees

What are kick back fees?

Kick back fees are fees received by an investment firm from a provider of investment funds for the inclusion of a specific fund in the investment firm’s product offering. These are also referred to as distribution fees, trailer fees or retrocessions.

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When will the ban on kick back fees take effect?

As of 1 January 2015. A one-year transitional arrangement will apply to kick back fees as of 1 January 2014. The kick back fees are for some existing financial instruments exempt from the ban. Send this question