PERG

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PERG is the sanctioned abbreviation for the FCA’s Perimeter Guidance Rules. You can find them here. Among other things, they address financial promotions

“Inducements” under COBS vs “inducements” under PERG

The FCA seems to use the word inducement in quite different ways, depending on which bit of the handbook it is thinking about. Under the COBS “Rule on Inducements”, an inducement clearly involves some sort of consideration: a benefit, concession, retrocession, or advantage that a customer (or investment manager) gets in return for it (or its clients’) business. By contrast, in the PERG rules about (especially as regards “inducements to enter into financial promotions” the regulator seems to be regarded much more loosely as not much more than a synonym for “strong invitation” or “incitement” (in our view an equally unhelpful use of a legal word with a clear meaning in an another context (being criminal law)) — but no quid pro quo, consideration or (cough) inducement seems to be needed — which is odd, because it is used together with the actual word “invitation”.

All a bit odd. Do you really “incite, counsel or procure” entry into a contract?