British regulators have issued new guidance that aims to ensure that retail investment advice is unbiased, and not influenced by inducements from product manufacturers.

The UK’s Financial Conduct Authority (FCA) Thursday published final guidance on the sorts of support that financial product manufacturers can provide to advisors in the wake of the ban on embedded commissions that took effect in January 2013.

The guidance follows a review that found payments were still being made that could result in advisory firms favouring one product provider over another, undermining the goals of the commission ban. The FCA stresses that firms must comply with the spirit of the ban, “which aimed to increase transparency and professional standards in the investment advice industry.”

That review, which was published in September, found a number of practices that gave the FCA cause for concern, including: payments by product providers to advisory firms that appeared to be linked to sales; and, arrangements that potentially incentivised advisory firms to promote a specific provider’s product to their advisors. The FCA also identified that certain joint ventures could create conflicts of interest and potentially lead to biased advice.

“The rules on inducements and conflicts of interest are not new. However our review made it clear there were certain practices that did not stand up to scrutiny. In the guidance published today we are helping firms better understand our expectations. Now it is for firms to make sure any payments are legitimate, are in consumers’ interest and that potential conflicts are well managed,” said Clive Adamson, director of supervision at the FCA.

The guidance also makes it clear that financial advisors and product providers share the responsibility of managing potential conflicts of interests that may arise under service and distribution agreements. It states that payments from product providers to advisory firms should be based on reasonable reimbursement for the costs incurred; and, that any payments should always enhance the quality of service provided to customers.