AIFA: Cash rebate ban is unjustified

clock

AIFA has joined the growing chorus of industry players urging the FSA to re-think its proposal to ban cash rebates as it warns the plans will be detrimental to customers.

In its response to the recent platform consultation paper, AIFA says it does "not understand the rationale" of the proposal and says the current system of rebating product charges in cash works well. "The reason given for this proposal was if an adviser charges the same on-going charge as the level of cash rebate then the advice could be construed as being free," it says. "We do not understand the rationale for FSA deciding to abolish this system." In its response, AIFA says the current adviser charging mechanism already provides for a transparent framework. "It is also wrong to as...

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

Platform functionality: Beware change for change's sake

Platform functionality: Beware change for change's sake

'It's all too easy to end up in the realm of bolt-ons and fripperies'

Steve Andrews
clock 26 June 2026 • 4 min read
Vanguard UK Platform Awards – Last day to vote

Vanguard UK Platform Awards – Last day to vote

Last chance to vote across several categories

Clive Waller
clock 26 June 2026 • 1 min read
Most advice firms only 'somewhat satisfied' with platforms' data

Most advice firms only 'somewhat satisfied' with platforms' data

According to NextWealth’s Data Openness Report 2026

Sophia Panayi
clock 18 June 2026 • 2 min read