Transact warns IFAs of cash rebate ban tax hit

In its delayed consultation paper published last week, the FSA proposed banning cash rebates to consumers - a move which will impact wrap platforms operating unbundled charging structures. The regulator said cash rebates can allow advisers to disguise the price of advice, or present it as being free, thereby undermining its drive to create a transparent charging regime under RDR. But in a letter sent to advisers, Transact head of marketing Malcolm Murray (pictured) said there is no evidence such rebates can be used to offset adviser charges and warns the proposed ban could lead to unf...