Platform paper: FSA bows to supermarkets on rebates

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The FSA today said in its long-awaited consultation paper platforms can continue to receive rebates from fund managers.

In a departure from its stance in March, when it expressed a preference for banning rebates, the FSA said platforms can continue to receive the payments from fund managers but insisted they must be fully disclosed. The FSA says: "We have decided not to propose changes that would require product charges and platform charges to be separated (i.e. bring an end to bundled charging). "Instead of this, we propose still to allow fund managers and other product providers to make payments to platforms for the administration services they receive, subject to improved disclosure of the payments ...

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