AIFA: Cash rebate ban is unjustified

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...