All platform rebates should be banned under a new remuneration structure subject to a separate timescale than RDR in order to improve consumer outcomes, according to the Financial Services Consumer Panel (FSCP).
A radical overhaul of current remuneration structures to eliminate bias and a requirement for platforms to draw up "living wills" are some of the proposals put forwards by the panel in its paper Implications of RDR Platform Proposals on Consumer Outcomests. "In order to deliver the aims of the RDR in the platform market, the FSA should focus on delivering the foundation of a new remuneration structure that removes bias and enables the consumer to have a clear understanding of the total cost of investing," reads the paper. It adds the platform market has inherited a number of "negative...
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