Are provider-to-platform marketing payments acceptable?

OPEN TO ABUSE

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Opinion is divided on whether continuing to allow some payments between providers and platforms is a necessary regulatory retreat, or a measure which could be open up to abuse.

Rebates might be on the way out, but that doesn’t mean product providers can’t send some cash platforms’ way. A number of industry experts have expressed surprise at the Financial Conduct Authority’s (FCA) decision to permit platforms to charge providers for a number of activities. Outlining its final rules for platforms earlier this year – in which the FCA’s main requirement was for platforms, for the most part, to be remunerated by a platform charge paid directly by clients – the regulator said there should remain a number of scenarios where it is still appropriate for platforms to ...

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