FSA won’t back down over platform cash rebates
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The FSA is unlikely to relent on banning cash rebates on platforms despite widespread industry opposition, according to the Tax Incentivised Savings Association.
The regulator proposed the ban last November in its discussion paper on the platform market after initially suggesting that rebates between fund managers and platforms should be banned.
TISA director of policy Malcolm Small says he does not think it is likely that the FSA will back down.
He says: “The FSA has realised it has painted itself into a corner. I think it understands that if it bans cash rebates, it is in danger of seriously harming, if not defeating, its stated policy objective of re-registration between platforms. However, the balance of probabilities is that such a ban will go ahead.”
Fidelity International head of UK fund partners Ed Dymott says: “There has been a lot of consensus on whether it is necessary to ban cash rebates but we cannot see the FSA moving on this. The FSA seems absolutely wedded to this idea of banning cash rebates.”
Institute of Financial Planning chief executive Nick Cann says the confusion over the cash rebates means advisers are still in the dark over whe ther platforms can offer systems for adviser-charging. He says: “Not only is the issue unclear for platforms but also for advisers who are planning how to charge fees.”
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Readers' comments (8)
Julian Stevens | 3 Jun 2011 10:25 am
When did the FSA last back down over anything in the face of industry opposition? This is what we intend to do, so just stop bleating and get on with it. Cost:Benefit Analysis? Worthless. Consultation? Just a hollow sham. Accountability? Non-existent. It's dreadful. The only thing we can do about it is seek authorisation from a non-UK regulator and passport back in.
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Dave Hedge | 3 Jun 2011 10:53 am
The FSA will not change their minds. If they believe black is white they will not change even when the blindfold is lifted.
Arrogance, incompetence and ignorance are the three principles of the cretins at Canary Wharf.
Add thse to a total lack of knowledge about the financial services plus complete indifference to the fate of the sector's future and the public's need for advice and you have the present position.
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Nick | 3 Jun 2011 11:00 am
totally agree Julian
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Patrick Schan | 3 Jun 2011 11:42 am
In years to come Mr Sants must be made to remember that he was personally responsible for the damage done to the british public and thousands of hard working IFAs as well as widening the enormous savings gap this country has. He will be a more reviled figure than Fred the Shred.
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Vincent Thompson | 3 Jun 2011 12:01 pm
Where's the democracy,where's the referendum.where's the one man one vote?The people involved in this at the FSA probably creeps into double figures,IFA's and theirclients number collectively ? Have the FSA spoken with HMRC? One of the architects of this at the FSA was a chap named Steve Tully ,I am not blaming him obviously but once the review was published he was moved to a different project ,that's not good management for a start...anyway we could all rattle on ....
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S Rogers | 3 Jun 2011 1:16 pm
When is the penny going to drop? RDR is here to stay and it will have to be accepted in the format laid out by the FSA. The time to have any constructive changes made has long since passed and the end scenario, for the majority of firms, will be less income and higher costs.
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Anonymous | 3 Jun 2011 3:55 pm
The FSA, with sants at the helm, should stand trial at the Hague.
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Phil Castle | 3 Jun 2011 5:11 pm
@S Rogers - The penny dropped a long time ago. Hence why I have done pretty much what I can to be as ready as I can for Jan 2013. The point is there are still so many unexpected consequences the FSA are ONLY NOW finding that we were telling the truth, that making the timeline a moving one based on each task being ready and tested is what can and should be argued now.
I suppose it is a bit like Y2K all over again. Fortunately computer armageddon was averted, but that date could not be moved. This date can and should be adjusted to suit circumstances as and when they occur, looking at each RDR aim in isolation and stating whetehr it is ready for implementation. It does not have to be a big bang (or a bloody crash)
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