National advisory group Foster Denovo is set to close a subsidiary which put on provider-funded events for its 80-plus advisers after a regulatory clampdown on inducements.
Group directors said they intend that Foster Denovo Event Management (FDEM) will cease trading in 2014. The subsidiary will fulfil its obligations for events already arranged until the end of the year, though it will receive no revenue for doing so. The group has been transitioning the now loss-making business away from putting on provider-funded events for its advisers and towards operating as an information-only proposition since 2012. It followed a regulatory crackdown on provider payments to advisory businesses by the then-Financial Services Authority (FSA) two years ago. Ea...
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