The FSA plans to publish a separate consultation paper on how platforms should disclose their charging structures, including fund manager rebates, on top of its second consultation document in February.
Today, the FSA announced a change of heart on banning rebates between fund managers and platform providers as such a move could risk increasing charges for consumers.
However, there will be increased disclosure of these arrangements and other platform charges to advisers and their clients under a new set of rules requiring further consultation.
Peter Smith, FSA head of investments policy, says: "The main reason for the change is that we think we can deliver what we need to without specifying to platforms how they get paid for what they do.
"What they do in terms of administration services, for example replacing what fund mangers do themselves, are no different to those by any third party administrator and they will charge a fee for doing that."
He says it is the responsibility of advisers to check platform propositions and their product ranges met their clients' needs. However, it will be the task of IFAs, providers and the regulator to be alert for potential bias on the back of deals negotiated through platforms.
The FSA believes the standard of adviser due diligence on platforms is still variable although it says it has seen some examples of very good practice amongst firms using one or more platforms.
The regulator plans to release a policy statement on platforms later next year which means providers could only have a year and half to sort out their arrangements before the RDR is implemented at the end of 2012.
Smith says: "We believe providers will be ready for the RDR but obviously it is hard for them to assess how long it will take without seeing more of the details. However, the changes we are proposing today are less than they may have thought originally back in March."
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