FSA calls for wrap providers to disclose income details

The Financial Services Authority has written to all platform providers asking them to disclose where they make their money, and which incentives they offer advisers who use their service.

The letter, sent by FSA senior associate for investment policy Steve Tully earlier this month, says platform and wrap providers must reveal details of the total income they receive in rebates and interest from fund managers.

They must also provide confirmation of the revenue received for each type of income in their last accounting year and indicate any anticipated changes to the mix of its income.

Terms and conditions each platform has with product providers must also be revealed, alongside details of any revenue sharing arrangements and service related variations in income.

Tully is also asking platform providers to disclose details of any monetary and non-monetary benefits it provides to adviser firms, including any conditions which restrict the supply of the benefit to adviser firms and how much of the cost of a non-monetary benefit it recoups from adviser firms.

The letter says: “Our proposals for adviser charging have caused some members of the industry to question the acceptability of platforms and others continuing to receive commission set by product providers. This also prompts wider questions about the best way to achieve transparency of incentives and charges on platforms in the longer term.

“Consequently, we now wish to gather information about platform operators’ income. We also wish to gather up-to-date information about the monetary and non-monetary benefits provided by platforms to adviser firms.”

Providers must respond by Friday.


Cold-call ban for rentback sector

The FSA has set out new proposals that will ban “exploitative advertising and high-pressure sales techniques” in the sale and rentback market, including a ban on cold-calling. The proposals are due to come into effect on June 30, 2010.

Move focus away from price

September is one of the peak times for motor insurance applications and renewals. It is all to do with the way car registrations are updated. No wonder then that the last few weeks have seen the TV ad schedules dominated by comparison websites and Direct Line promising ever increasing discounts and savings.

India: too big to ignore?

By Kunal Desai, head of Indian Equities, Neptune  India is officially the world’s fastest-growing major economy and remains firmly on track to become the third-largest economy by 2030, overtaking Japan and Germany. As an accelerating labour force combines with increasing labour productivity, is India getting too big to ignore? Click here for full article   […]


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

    Email: customerservices@moneymarketing.com