14. Inducements and Payment for Research.

Inducements rules appply to MiFID business and partly to non-MiFID business. The rules only apply to professional clients and retail client. Who is not be subject to the detailed inducement provisions?

ECP business

Inducements. Minor non-monetary benefits are permitted to be received, but it must be...

... disclosed prior to the provision of the relevant service to the client.

The inducements rules should be seen as payment rule, as it prohibits any payment, unless...

... unless expressly permitted.

In relation to MiFID business, firms are prohibited from paying or accepting any fees other than...?

Management fees*, | Proper fees**, | 3rd party fees.

Management fees, Proper fees* and 3rd party fees are permissible only if they do not impair compliance with...

... duty to act in the client’s best interests

The inducements rules have not been fully implemented for Non-MiFID business. What test must be satisfied in relation to 3rd-party payments?

Compliance test.

Firms which produce research must apply a identifiable charge for research when providing it to an entity that is not permitted to receive research for free, that is a firm that is either providing portfolio management services or

... provides advice to a retail.