Fidelity's Shaughnessy on wraps

To date, the FSA has taken a hard line on the issue of fund management groups paying platforms for the administration they perform. It favours the creation of separate fund management charges and platform charges with no rebates allowed. Its final verdict on the issue is due in the summer, but while the goal of transparency behind the changes is sound, the current proposals could have a number of unintended consequences. Most significantly, the proposals could have a direct impact on cost and availability of funds for IFA clients. The FSA’s primary concern in its work on rebates has b...