The FSA said today it will stick to its guns and ban cash rebates, despite widespread industry opposition.
But a ban will only come into effect after RDR implementation to allow the regulator to research the issue further. In today's policy paper, the regulator said it will ban cash rebates paid from fund managers to consumers via their platform cash accounts amid fears they could disguise the cost of advice and undermine adviser charging principles central to RDR. It stressed it wants to ban cash rebates because their continuation would run counter to the RDRs' transparency principle. In the main, the FSA thinks cash rebates are similar to commission paid from product providers to ad...
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