Skandia isolated as platforms come together to oppose cash rebate ban
Skandia was the only platform to respond in favour of the FSA’s proposed cash rebate ban with the majority of other platforms submitting a joint response to the FSA calling for a rethink.
A group made up of most of the main platforms, including Ascentric, Nucleus, Novia, Transact, Fidelity, Standard Life, Axa, Aviva, Raymond James and 7IM submitted a joint response to the FSA outlining their opposition to the cash rebate ban.
The other main platform not to be part of the joint submission was Cofunds. It says it is against a ban on cash rebates but, because it had already submitted its own response and one together with the UK Platform Group, it did not want to respond again through the joint work.
The FSA announced plans to ban cash rebates as part of its platform consultation in November but the proposal has been widely criticised by advisers and platform groups. The deadline for submitting a response was yesterday.
Ascentric managing director Hugo Thorman says the FSA should listen to indsutry concerns. He says: “We have explained to the FSA that we do not believe there is a need to ban cash rebates. I was surprised when I first saw that they had proposed the ban. I had to look again to make sure I was not seeing things.”
Skandia proposition marketing manager Jeremy Mugridge (pictured) says Skandia supports the FSA proposal. He says: “We had a difference in opinion with the rest of the group over cash rebates and we believe that we can accommodate the FSA by giving rebates in units rather than cash accounts.”
The IMA has also spoke out again against a ban on rebates in its response to the FSA consultation.