View more on these topics

FCA confirms legacy cash rebates can continue

House-Home-Mortgage-Property-Hands-700x450.jpg

The FCA has confirmed platform cash rebates on legacy business can continue indefinitely.

The move was confirmed in the regulator’s quarterly consultation paper. Money Marketing revealed in July the FCA was consulting on draft guidance regarding the treatment of cash rebates for legacy business following industry queries in the wake of the platform policy statement.

A note sent to trade bodies at the time confirmed the FCA had a number of industry queries regarding legacy cash rebates.

The FCA has now set out circumstances where cash rebates will be allowed to continue and given specific examples.

The examples include where a client’s investment or regular contributions to an investment are reduced and where a product is re-registered between platforms but not otherwise changed.

The regulator’s platform policy statement, published in April, confirmed a ban on cash rebates above £1 on new business from April 2014 while unit rebates were allowed to continue but with a tax charge applied.

It also banned all legacy payments between fund managers and platforms from April 2016 but did not stipulate whether it would ban cash rebates to clients on legacy business.

Today’s consultation provides a table of cases where legacy cash rebates are allowed to continue. Responses are due by 6 November.

Where legacy cash rebates can continue: Click on table to view larger image

Holly Mackay 450 Index

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com