The Financial Services Authority (FSA)'s lack of clarity on platforms and cash rebates could create a second retail distribution review (RDR), according to fund supermarket Cofunds.
Cofunds managing director of operational services, Stephen Mohan, has warned that the regulator’s decision to delay its final rules on platforms has further complicated the work platform providers have ahead of them.
Speaking at a Marketforce conference on the impact of the RDR, Mohan said the delay from the regulator created operational difficulties for platforms such as Cofunds which has had to make plans to unbundle its charging structure without knowing what the final rules will look like.
"In fairness, we’re sitting in real confusion as to what we are doing", he said. "We made an announcement as to what we were doing on share classes [asking fund managers to introduce a rebate free share class] and yet the FSA’s policy statements and consultation papers have almost created a second RDR. They have almost created a delayed RDR for wraps."
"Until we know what is happening about rebates and when, there is nobody in this room that can genuinely say, that they know what a portfolio of funds, let alone funds on platforms, will look like in 2013."
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