Why the FSA wants to ban cash rebates

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 advi...