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pecuniary reward meaning
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What does pecuniary reward mean?
In legal practice, pecuniary reward describes monetary remuneration or benefit received for doing, arranging or refraining from an act, typically fees, commission, mark-ups, bonuses, retainers or other cash payments.
It is a descriptive expression rather than a single statutory term, but it appears across legislation and regulatory materials. In UK financial services under FSMA and FCA perimeter guidance, whether an activity is carried on “by way of business” commonly turns on receiving, or expecting to receive, remuneration or other pecuniary reward. Inducements rules (for example under MiFID/COBS and the Insurance Distribution regime) address “fees, commission or other monetary benefits”, often referred to as pecuniary benefits.
Practically, the existence of a pecuniary reward may: signal that a regulated activity is being undertaken and so require authorisation; trigger disclosure and conflicts-of-interest duties; and be subject to inducement prohibitions or client-best-interest tests. It will also usually be taxable as income.
Usage is broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland. Irish financial regulation overseen by the Central Bank uses the language of remuneration/monetary benefits rather than a formal definition of “pecuniary reward”, so the term should be applied according to context.
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View the related UK Parliament Acts about pecuniary reward
UK PARLIAMENT ACTS
Financial Services and Markets Act 2000 (2000 c 8)
Financial Services and Markets Act 20002000 CHAPTER 8An Act to make provision about the regulation of financial services and markets; to provide for the transfer of certain statutory functions relating to building societies, friendly societies, industrial and provident societies and certain other mutual societies; and for connected purposes.[14th June 2000]BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—Part I . . .1 . . .. . .2 . . .. . .3 . . .[3A . . .]4 . . .5 . . .6 . . .[. . .][6A . . .]. . .7 . . .. . .8 . . .9 . . .10 . . .11 . . .. . .12 . . .13 . . .. . .14 . . .15 . . .16 . . .17 . . .18 . . .[Part 1A The Regulators][Chapter 1 The Financial Conduct Authority][The Financial Conduct Authority][1A The Financial Conduct Authority][The FCA's general duties][1B The FCA's general duties][1C The consumer protection objective][1D The integrity objective][1E The competition objective][Interpretation of terms used in relation to FCA's general duties][1F Meaning of “relevant markets” in strategic objective][1G Meaning of “consumer”][1H Further interpretative provisions for sections 1B to 1G][1I Meaning of “the UK financial system”][Modifications applying if core activity not regulated by PRA][1IA Modifications applying if core activity not regulated by PRA][Power to amend objectives][1J Power to amend objectives][Recommendations][1JA Recommendations by Treasury in...
