FSA plan to ban legacy rebates 'disappoints' Skandia

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Investment platform Skandia has criticised plans by the Financial Services Authority's (FSA's) to outlaw rebates on 'legacy' business paid by fund groups to platforms from 2016.

The expected move, revealed by IFAonline's sister title, Investment Week, would force providers to charge managers for additional services in an attempt to shore up revenue. Skandia, which has been vocal in its support for unit rebates as an alternative to cash rebates, could have income from its large legacy back-book compromised by the proposed legislation. "It would be a disappointing result for advisers and their clients and could result in unnecessary disruption and upheaval on legacy business," said UK managing director Peter Mann (pictured). "Our preference would be that no ...

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