How important will rebates and cash accounts be in the new world?

The FSA’s landmark decision has certainly got the industry talking. Listening to all the noise, one thing we need to be clear on, is the FSA has not banned rebates. It will however, ban platforms from retaining rebates and any other payments made by fund managers. Fund manager rebates can continue for the customer’s benefit in the form of additional fund units – not in the form of cash. There are some in the industry who would like to think this means rebates will be a thing of the past. However, the FSA recognises the customer benefit rebates can sustain. Unit rebates passed in full ...