Ascentric calls for new joint action on cash rebate ban
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Source: Michael Walter/Troika
Ascentric is calling for platform providers to submit a third joint response to the FSA outlining their opposition to a cash rebate ban, with Cofunds agreeing to join the group for the first time.
In February, Money Marketing revealed Ascentric, Nucleus, Novia, Transact, Fidelity, Standard Life, Axa, Aviva, Raymond James and 7IM submitted a joint response to the FSA’s November consultation paper on platforms, outlining their opposition to the ban.
In April, the group submitted a joint response to the regulator’s operational questionnaire which followed up its consultation paper.
Skandia and Cofunds did not join the group. At the time Skandia said it supported the FSA’s proposed ban while Cofunds said it was against a ban on cash rebates but had already submitted two responses.
In its platform policy statement in August, the FSA confirmed its intention to ban cash rebates but delayed implementing the new rules to conduct further research.
Ascentric managing director Hugo Thorman (pictured) says: “I do not think the FSA yet understands the implications of a cash rebate ban. I want to drive the point home further with another submission which I hope other platforms will support.”
Cofunds chief executive Martin Davis says: “Cofunds would support a joint submission. Our position on cash rebates is well understood and we will continue to engage with the FSA.”
Skandia has ruled out being part of any joint response. A spokeswoman says: “Even when fully disclosed, there remains a real possibility that investors could think their platform and advice costs are paid for by the rebates they receive.”
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Readers' comments (2)
Stan Kirk | 21 Dec 2011 9:22 am
I'm not sure why Skandia is called a 'platform' since it is actually a life company with a variety of different products - and life companies are exempt from the FSA fund AMC cash rebate proposals. The nightmare for Skandia would be if the FSA were to extend their proposal to life companies! And do they really think that 'bonus units' (the alternative suggested by the FSA) are easier to understand and less confusing? Only a life company would think that.
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charlie palmer | 21 Dec 2011 10:15 am
cash rebate = commission.
level the playing field for IFAs please.
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