View more on these topics

FCA to ban all legacy fund manager-platform payments from 2016

FCA logo original size

All legacy payments on past business between fund managers and platforms are to be banned by 2016, the FCA has confirmed today.

In its platform policy statement published this morning, the regulator said a sunset clause of two years would be applied from April 2014 to allow platforms to make the required changes to their business models.

The statement confirmed the regulator’s ban on cash rebates and fund manager payments on new business from April 2014. De minimis cash rebates of £1 will be permitted but a tax charge will apply.

The regulator says rebates can be passed from the fund manager to the platform in cash as long as they are passed back to the customer in units.

Unit rebates will be allowed to continue also with a tax charge following the HMRC announcement last month.

The regulator says: ”The FCA is making changes to ensure that investors can make fully informed choices if they wish to use a platform and understand what they are paying for the service the platform provides.

”At the end of a two year transition period platforms will have to charge customers a platform charge for both new and existing business.”

Certain payments between fund managers and platforms will be allowed where the platform has incurred one-off costs relating to correcting pricing errors, corporate actions and giving feedback.

Advertising payments between fund managers and platforms will also be allowed to continue, although the FCA says this should not be used to influence business.

All rules apply to both advised and non-advised platforms.

The FCA is currently considering whether to extend the rules to Sipp providers and life companies, saying it will consult on this in the future.

In its June 2012 consultation paper, the regulator confirmed it was pushing ahead with plans to ban fund manager payments to platforms and cash rebates.

The FSA initially said it wanted to ban fund manager payments to platforms, then in November 2010 changed its mind and announced a proposal to ban cash rebates instead. In August 2011, the FSA said it was “desirable in principle” to ban all rebates, but said further research was needed to assess the impact of a ban on consumers.

The regulator delayed the publication of this final policy statement in the second half of last year over HMRC concerns over the tax treatment of rebates.



SJP funds under management grow 12% in Q1 to £39bn

St James’s Place has seen funds under management jump 12 per cent in the first three months of the year and 26 per cent over 12 months to reach £39bn. In its interim management statement, published today, the firm reported a 36 per cent increase in net inflows in Q1 of £947m, compared to £698m […]

F&TRC appoints David Child as non-exec director

The Finance & Technology Research Centre has appointed Lifesearch non-executive chairman David Child as non-executive director. Child will take up the role on 1 May. He is also non-executive chairman of pensions technology business Dunstan Thomas. F&TRC managing director Ian McKenna says: “I have worked with David previously in a number of other organisations and […]

Mattioli acquires Ashcourt Rowan’s pension admin business

Mattioli Woods subsidiary City Pensions Limited has acquired Ashcourt Rowan’s pension administration business in a deal worth up to £1.3m. Under the deal, City Pensions will acquire the trade and certain assets of Ashcourt Rowan Administration Limited, plus pension trustee companies Ashcourt Rowan Pension Trustees Limited and Robinson Gear Management Services. The businesses provide trustee […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Explains why Stephen Lansdown sold £50 odd miilion of his HL shares recently!!!

Leave a comment


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 thought leadership.

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