View more on these topics

FCA urged to ban cash rebates to Sipps

FCA logo 480

The FCA is under pressure to push through proposals to apply the ban on platform fund rebates to life companies and Sipps.

Last week, the regulator published a policy statement setting out plans to ban cash rebates and fund manager payments to platforms on new business from April 2014. In addition, legacy payments on past business will be banned by 2016.

The FCA is said it is considering whether to extend the rules to cover Sipp providers and life companies.

A J Bell marketing director Billy Mackay says: “We think the FCA are dragging their heels on applying the ban on rebates to adjacent markets.

“The FCA have said it is complex to apply the rules to Sipps and life companies but it is not obvious why that is.” 

James Hay chief executive Alastair Conway says: “While this [consulting on bringing Sipps and life companies under the platform rebate rules] is only right and proper, it needs to be completed as quickly as possible to end further uncertainty.

“We have failed to see why these providers have been treated differently to date and would urge the FCA to make this consultation rapid to enable a level playing field across the wider platform market.”

Hargreaves Lansdown says it plans to apply the FCA’s revised rules on cash rebates for platforms to its Sipp business.

Hargreaves Lansdown head of advice Danny Cox says: “I do not understand why the rules do not apply to things like Sipps.

“It makes sense from a client perspective to apply the same pricing across the whole platform, otherwise you end up treating one product differently to another which could be confusing for the customer.”


Zurich launches new auto-enrolment default fund

Zurich has partnered with investment giants Schroders and Threadneedle to launch a new automatic enrolment default fund. The Zurich Dynamic Lifestyle Portfolio consists of three underlying funds – the Mixed Investments and DC Pre-Retirement funds, managed by Schroders, and the Zurich Deposit & Treasury fund, managed by Threadneedle. Zurich says the fund is designed to […]

Standard Life CFO Jackie Hunt to head Pru UK and Europe

Standard Life chief financial officer Jackie Hunt is joining Prudential as chief executive of UK and Europe. Current chief executive Rob Devey will leave the company at the end of October to pursue new opportunities. Hunt joined Standard Life in 2009 and has held a number of senior leadership roles at Royal & Sun Alliance […]

Govt to accelerate plans for RBS and Lloyds sell-off

Those close to the chancellor are accelerating efforts to prepare for a reprivatisation of taxpayer-funded Royal Bank of Scotland and Lloyds Banking Group before the general election, even if their share prices remain below the levels when they were rescued, according to a report in the Financial Times.  It is understood that Tories close to Geoge […]

Money Advice Service looks to partner with banks to bridge advice gap

The Money Advice Service is looking to grow its partnerships with banks to bridge the advice gap created by recent high profile exits from mass market advice. Speaking to Money Marketing this week, MAS chief executive Caroline Rookes says she is keen to expand the service’s reach, and that in a year’s time she would […]


News and expert analysis straight to your inbox

Sign up


    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 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