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01 August 2011

IFAonline: FSA - Platform rebate rules will come in after RDR


The FSA says platform charging rules will not come into force by the RDR deadline of 31 December 2012, as more research is needed before it can make the final decision on whether to ban cash rebates.

The regulator said although it wants ban both fund manager rebates (between providers and platforms) and cash rebates to consumers it will delay a decision pending more research.

The FSA said: "However, we appreciate that the industry needs certainty about what systems changes it may need to make. So what we can say at this point is that any rule banning payments to platforms will not come into force until after 31 December 2012, when the RDR rules come into force, as we recognise that firms need sufficient time to prepare for the change."

In something of a U-turn to its position in CP10/29 (when it backtracked on a  previous proposal to ban payments from fund managers to platforms), the FSA also said today it will delay a decision on whether to ban these payments.

The decision to allow some breathing space will come as a relief to the majority of platform players which had opposed the move to ban cash rebates. Some feared they would face a race against time to adapt their systems.

Full article



© Incisive Media Investments Limited


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