British regulators said Wednesday they have found that some life insurance firms are trying to circumvent rules adopted to eliminate commission bias in financial advice.

At the start of the year, new rules took effect in the UK, known as the Retail Distribution Review (RDR) rules, which aim to improve retail investor protection by enhancing advisors’ proficiency requirements and outlawing embedded commissions, among other things.

On Wednesday, the UK’s Financial Conduct Authority (FCA) reported that it has found some life insurance firms introduced arrangements that could influence advisors, contrary to the RDR’s aim of removing commission bias.

The FCA said its review of the practices of 26 life insurers and advisory firms found: some payments by life insurers to advisory firms (for things such as research and sales support) appeared to be linked to product sales; arrangements that incentivized advisory firms to promote a specific provider’s product to their advisors; and, certain joint ventures between insurers and advisory firms that, it says, could create conflicts of interest and potentially lead to biased advice.

Two of those firms have been referred to enforcement as the FCA identified potential rule breaches in those cases, it said. And, it reported that many of the firms have since changed these arrangements to comply with the rules.

“The changes we made to the retail investment advice sector were designed to mark a step change in the way advice was given. It signaled the end of advice that might be influenced by the commission payments made by product providers to advisory firms, and the start of a new era of trust and transparency between a firm and its customers. The findings of this review reveal that the actions of some firms have the effect of undermining the objectives of the RDR,” said Clive Adamson, the FCA’s director of supervision.

“Most the firms involved in the review have already made changes, which are welcome, but we want all firms in this market to review and, if necessary revise their existing arrangements. We will revisit this area in the future to check that the necessary improvements have been made,” he added.

The FCA also published proposed new guidance to explain why the FCA thinks certain payments may cause conflicts of interest. Consultation on that guidance is open until October 18.