An inducement is a benefit offered to a firm, or any person acting for a firm with a view to that firm or person adopting a particular course of action. Inducements include (but not limited to): cash, cash equivalents, commission, goods, hospitability or training programmes.
Principle 8 requires all firms 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 the firm’s duties to its customers.
A firm that offers an inducement should consider whether doing so conflicts with its obligations under Principles 1 and 6, to act with integrity and treat
customers fairly.
A firm must, therefore, take reasonable steps to ensure that it, and any person acting on its behalf, does not offer, give, solicit, or accept an inducement if it conflicts to a material extent with the duty the firm owes to its customers.
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