Fidelity International - now Fidelity Worldwide Investment - has called on the FSA to "look at the Australian approach" after its Treasury announced platforms could continue to receive fund manager rebates.
In a u-turn on its original decision set out under the Future of Financial Advice reforms, the Australian Treasury will no longer ban fund manager rebates to platforms, but instead implement a policy of disclosure and transparency.
The Australian rules contrast with regulations impacting platforms in the UK where the FSA has stated its intention to ban both fund manager rebates paid to platforms and cash rebates to consumers.
Fidelity Worldwide Investment said the FSA's platform pricing policy will result in consumer detriment and has urged the City watchdog to take heed of developments coming out of the Australian market.
"Our current concern with the FSA's direction on pricing is this is leading to the customer paying more than they do today, in a model which is likely to be significantly more complex," said Fidelity Worldwide Investment head of commercial Ed Dymott (pictured).
"With savings rates at an all time low, we need regulations that lead on simplicity and aim to make our market more accessible. We would urge the FSA to look at the Australian approach."
In August, Fidelity FundsNetwork stole a march on its supermarket rivals by disclosing its fund manager rebates in a bid to show its pricing policy is free from commercial bias.
FundsNetwork is launching an unbundled model in Q1 2012 and says it will set out a roadmap of its future pricing policy over the coming weeks. The unbundled offering will be part of a hybrid pricing model looking to offer consumers choice.
"As an organisation we are committed to transparency and providing our customers with choice with how they pay for their services, including explicit unbundled pricing," added Dymott.
"Rather than have a regulator define which pricing model they believe is right, we believe that by having choice, this will improve competition and ensure that we get efficient pricing."
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