Skandia: Cash rebate ban a 'blow' to wraps

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Today's confirmation that cash rebates will be banned is a 'blow' to wrap platforms and presents a 'significant challenge' to their business models, fund supermarket Skandia has said.

In this morning's consultation paper, the watchdog confirmed its intention to ban cash rebates - payments from product providers to consumers via platform cash accounts. Unit rebates used to purchase additional fund units will continue to be permitted. Skandia, which cut itself adrift from fellow platforms by supporting the mooted ban on cash rebates in favour of unit rebates, hailed the decision by the FSA to press ahead with the ban a victory for consumers. "Today's decision by the FSA is a victory for good customer outcomes over industry self-interest," said Skandia UK chief exe...

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