FSA may reconsider cash rebate ban: Fidelity

clock

Fidelity has expressed "sympathy" for wraps following plans for a cash rebate ban - a move it says will be difficult to implement - and thinks the regulator may reconsider its position.

Earlier this month, the FSA proposed banning cash rebates paid to client cash accounts, arguing they could be used by advisers to disguise the price of advice and thereby undermine its drive to transparent charging. The move, set out in the regulator's long-awaited consultation paper, will impact wrap platforms operating unbundled charging structures. Rebates will now have to be made in the form of units. But Fidelity head of platform sales and DC business Julian Webb thinks such an undertaking will be complex. "Whilst I can understand where the FSA is coming from and think the rat...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Wrap/platforms

FNZ launches adviser-focused AI tool as personalisation demand grows

FNZ launches adviser-focused AI tool as personalisation demand grows

Generative AI solution intended to cut admin time and help advisers meet Consumer Duty standards

Sahar Nazir
clock 19 August 2025 • 2 min read
Scottish Widows' Bold predicts adviser 'flight to trusted quality' in fragmented platform market

Scottish Widows' Bold predicts adviser 'flight to trusted quality' in fragmented platform market

‘There will be potential platform consolidation’

Jenna Brown
clock 18 August 2025 • 6 min read
Aviva platform net flows climb 28%

Aviva platform net flows climb 28%

Driven by higher adviser client retention and expanding direct wealth channel

Sahar Nazir
clock 14 August 2025 • 2 min read