Today's confirmation that cash rebates will be banned is a 'blow' to wrap platforms and presents a 'significant challenge' to their business models, fund supermarket Skandia has said.
Hargreaves Lansdown is confident its business model has the flexibility to cope with the ban on platform rebates proposed today by the Financial Services Authority (FSA).
The unbundling of platform charges will result in greater price competition between fund providers, the Financial Services Authority (FSA) said today.
The Financial Services Authority (FSA) has suggested it will not read across its proposed ban on platform rebates to life companies, but has promised to explore the issue further.
The FSA has decided to apply its ban on platform rebates to execution-only propositions.
The Financial Services Authority (FSA) has this morning confirmed its intention to ban both payments from providers to platforms and cash rebates to consumers.
Wrap platforms are potentially "misleading" advisers by claiming their cash accounts facilitate adviser charging, according to Skandia.