The Financial Services Authority (FSA) is planning to ban rebates on legacy business which are paid by fund groups to platforms from 2016, in a move which will shake up the platform industry and force providers to charge groups for additional services.
Investment Week, IFAonline's sister title, can reveal the FSA intends to stop platforms retaining rebates from fund groups on legacy business, and is giving them a two-year grace period to migrate clients on to new fee arrangements. The new rules will be revealed officially in the near future, most likely in the upcoming platform paper. Such a move will ensure platforms shift clients into new wrap-style fee arrangements, where the client pays an explicit platform fee. While the regulator cannot force the issue by insisting clients are moved out of bundled share classes and into new...
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