The FSA has at long last published its final (we hope) consultation paper on platform rebates.
If you are unfamiliar with the main headlines, you can find them all HERE.
Here, we have collected reaction to the proposals from all the main parties affected...
"We're extremely pleased to see the FSA has followed through on its original decision on rebates. Rebates mask the real cost of the process and the decision to ban them is an essential step towards enabling people to accurately assess the value of the service they're receiving.
All the reaction from the FSA's latest consultation on platform rebates
"We're keen to see the FSA apply the same rules across the whole market, picking up the SIPP and life companies, as we see no reason why the end investors won't value transparency in this area too."
"The FSA's confirmation it is to ban cash rebates is a blow to wrap platforms and presents a significant challenge to their business models. Skandia welcomes the FSA's decision as it has been a lone voice in arguing that unit rebates will deliver better outcomes for customers.
"Wrap platforms must now decide whether to update their systems to facilitate unit rebates and adviser charging via unit deduction, or move away from facilitating rebates completely and ensure cash accounts are topped up by direct debits from investors."
"There are few surprises in today's platform consultation paper, with most of the policy being already well debated. We welcome increased transparency and have already taken a lead here in the market.
"As with any consultation process there are bound to be areas which need refining, and we will continue to work with the regulator to resolve these having fully reflected on the draft rules we now have."
"The FSA's paper builds on earlier messages given by that they wish to proceed with a ban on platforms being remunerated by fund groups. The FSA's position does not come as a surprise, and our planning has been focused on a "no payments to platforms" outcome.
"We firmly believe our business model is flexible enough to deal with any changes we may need to make when the FSA finalise their rules. We are confident we have solutions that will work for our clients."
"We hugely welcome the proposal that platforms can only be remunerated by payment from the retail client. This signals the end of the collusion between platforms and asset managers which has done little to promote choice or transparency."
"The RDR is about transparency and the consumer and the FSA‘s stance (on rebates) presumably tries to achieve this objective but possibly with the unintended consequence of greater complexity.
"Our view is that all payments and rebates should be retained. We believe this represents the most practical way to discount the cost of investments accessed via a platform whilst ensuring transparency of other charges."
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