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FSA delays platform rule changes

FSA e14 Building View 480

The FSA has delayed the implementation of rule changes for platforms amid concerns over the tax treatment of rebates.

In June, the FSA confirmed its intention to ban cash rebates and payments between fund managers and platforms but said unit rebates will be allowed to continue.

Responses to the consultation from the platform industry have raised queries about the tax treatment of unit rebates which have now been passed to HMRC for closer scrutiny.

The regulator had intended to publish final rules by the end of the year, but it now says the changes will not be confirmed until 2013. It intends to give platforms a 12-month period from when the rules are published to make the required changes.

An FSA spokeswoman says: “Consultation paper 12/12 closed for responses at the end of September. Responses raised a variety of questions including the tax treatment of rebates and payments to platforms. We are taking the points raised into account and we understand that HMRC is working on clarifying the tax position. We intend to publish the policy statement in 2013.”

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There are 2 comments at the moment, we would love to hear your opinion too.

  1. What a shame they did not give advisers a little bit more time to adapt their systems and obtain level 4 qualifications before they see off around 15-20% of CF30 advisers who through no fault of their own have not yet got their level 4 nailed.

    If you are in a network the network has been handed the poison chalice by which an adviser is de-authorised from CF30 permissions if not at level 4 by end 2012.

    Nice work FSA, new rules applied retrospectively and get the networks to do the dirty work.

    Still struggling with level 4, 10 credits to go, maybe get them this month, maybe not, who cares now, the industry is in tatters and the seamless transition to fee based services and higher so called professionalism is looking like a turkey at Xmas, sad, dejected, demoralised and about to lose its head.

  2. The proposed ban on cash rebates to client accounts has been widely condemned as unnecessary and unworkable (indeed sets the clock back to the bad old days days of life company obscure charging tactics) – only Skandia seem to be in favour (a life company!) and tax is just one reason why this idea should have been kicked out long ago!

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