FCA allows £1 de minimis cash rebates

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The Financial Conduct Authority is to allow nominal ‘de minimis' cash rebates of £1 or less, despite outlawing the payments in all but name.

In its platform paper released this morning, the regulator said was "proceeding with our ban on cash rebates for non-advised platforms, in line with the ban previously consulted on in the advised market, to prevent these payments being used to disguise the costs of the platform charge." However, the paper added: "We are making clear that in both the advised and non-advised platform market this ban would not prevent consumers from being able to receive cash rebates which have a value of £1 or less per month for each fund held on the platform, as this would be unlikely to offset any advise...

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