Platforms pan FSA's 'illogical' cash rebate proposal

clock

A number of platforms have questioned the Financial Services Authority's (FSA) intention to ban cash rebates to consumers.

In their official reponses to FSA consultation paper CP 12/12, which closes today, providers said the proposals are "illogical" and would only "confuse" investors. In June, the regulator said the way in which consumers currently pay for platform services "hinders transparency" and "have the potential to negatively affect competition in the market". It said cash rebates potentially provide a mechanism for commission to continue being paid. But unit rebates would still be allowed under the plans. With the exception of Skandia, fund supermarkets and wraps have been united against t...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Wrap/platforms

AJ Bell platform hits record AUM as inflows rise 19%

AJ Bell platform hits record AUM as inflows rise 19%

13% rise over the past year and a 1% increase in the quarter

Linus Uhlig
clock 24 April 2025 • 2 min read
Wealthtime signs ten-year deal with Wipro to overhaul platform

Wealthtime signs ten-year deal with Wipro to overhaul platform

The firm will use Wipro's artificial intelligence

Sahar Nazir
clock 01 April 2025 • 2 min read
Adviser platform assets up to £616.2bn in 2024

Adviser platform assets up to £616.2bn in 2024

Strong advised platform new business throughout 2024

Jenna Brown
clock 19 March 2025 • 3 min read