Fidelity FundsNetwork has warned the true cost of implementing the 2016 legacy rebate ban could be far higher than the regulator's predictions because of rules on contacting ‘dormant' clients.
The Financial Conduct Authority (FCA) issued long-awaited sweeping changes to the sector on Friday, including banning payments from product providers to platforms. As previously revealed by IFAonline's sister title Investment Week, the FCA also confirmed a 2016 sunset clause on legacy payments meaning, from April that year, no platform will be able to receive payments from fund groups on any legacy money. FundsNetwork has welcomed the majority of the rules, but it warned platforms should expect to pay substantially more than the £62m in one-off costs estimated by the regulator if they...
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