Skandia warns platform rebate ban to have 'severe consequences'

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Skandia has added its voice to the debate on platform payments by arguing a ban on rebates will result in a poorer outcome for consumers.

The platform says a total ban on platform rebates - something the FSA indicated it is leaning towards in its recent Platforms Discussion Paper - is likely to have "severe unintended consequences" for consumers, thereby defeating the prime objective of the RDR. "Preventing rebates being passed back to consumers would negate all current platform charging structures and is not necessary in order to deliver the transparency required by the RDR," it says. The platform believes a complete ban on rebates - including those passed back to customers - will remove healthy market forces from the ...

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