The FSA will release a platform consultation paper within the next couple of months setting out draft rules on rebates and regulations for execution-only platforms, after Deloitte completed its research into the sector.
Its paper, expected to be published this quarter, will tackle the issues of fund manager and cash rebates, unbundling and whether to read across adviser charging rules to execution-only platforms and life companies.
At its heart, the paper will set out draft rules for the treatment of platform rebates - the most contentious area of platform policy.
In its August policy statement, the regulator re-stated its intention to ban both fund manager and cash rebates, pending further research.
It deployed the services of accountancy firm Deloitte to carry out research into rebates, which has been finalised with the findings fed back to the FSA.
Despite the watchdog's plans to ban rebates, an insider said final rules are by no means set in stone.
"The FSA seems to have got a much better understanding of the market place now - it is too hard to tell whether it will ban rebates or not."
The paper will tackle the execution-only platform market as the FSA looks to up scrutiny of the sector and possibly bring it under wider platform rules.
"There is potential for the FSA to read across adviser charging into the execution-only market," the insider added. "It suggested this in the policy paper but it now seem absolutely wedded to it. The regulator is very down on the execution-only market."
The FSA is also considering reading across adviser charging rules to life companies - a move which could require them to disclose rebates.
A policy paper setting out final rules is expected to be issued before the end of this year.
In its August policy paper the watchdog said platforms will not have to implement final rules until after 2013, sparking suggestion of what has been dubbed 'RDR 2.
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