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FSA to quiz consumers over platform payment ban

The FSA is to contact consumers who have assets held on platforms to gauge their knowledge of platform functions as part of its research into whether or not to press ahead with its proposed ban on payments and rebates.

Money Marketing understands the regulator has asked platforms to source clients as part of further research into the possible effects of its proposed ban on payments between fund managers and platforms and cash rebates to investors. The research will begin in early October.

The FSA published its platform policy statement in August, saying it would be “desirable” to ban both cash rebates from product providers to investors and product provider payments to platforms. But it said it wanted to conduct further research into the implications of the rules before they were finalised.

An FSA spokeswoman says: “In order to inform our decision on the appropriate timescale for making any rules, we plan to carry out further work, including careful consideration of the impact on consumers, business model analysis of the platforms market and research into the way consumers engage with this market.”

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. WHAT !

    You couldn’t make this up – most consumers don’t know the difference between an ISA and a Lincolnshire sausage and the FSA are going to conduct a random sample and ask them what exactly ?

    I’ve got an idea. Why doesn’t the FSA tell consumers just how much all this regulation has cost so far and how much it will cost in the future. Make sure that they understand the way in which it impacts on the charges that consumers pay for their financial products (remembering it’s not just the cost of running the FSA but the much greater cost of all the compliance people in financial services). Tell them what the FSA has achieved (a proper cost-benefit analysis). Then ask those consumers if they think the FSA represents value for money ?

  2. Might help if they actaully asked IFAs, or will it be the same old Stalist non -contact with the people who really understand the issue.

    No doubt the survey will be slanted in the typically vacuuous FSA manner, so they can purport to ask consumers, but in reality it is skewed to their own perrnicious ends; They think that everything should be free free free, and that we as an industry are bent, bent, bent.

    Same ol, same old.

  3. This feels like yet another move to block advisers from actually being remunerated for providing a service. Are businesses destined to be run as charities now because that is the way they are being driven.

  4. The FSA and “careful consideration of the impact on consumers”?

    Well that’s a novel concept.

  5. Er – might it be easier to question consumers about the theory of relativity? E=mc squared, or not, is surely going to be more relevant that questions about platforms.
    As an aside, there’s absolutely no chance of the FSA ever travelling quicker than the speed of ….. (insert own words, eg a funeral cortege).

  6. Complete waste of time and money but that’s the FSA for you.

    Ask 100 people in the street about platforms I guarantee that all of their answers will involve trains, stations and the shocking price of season tickets.

  7. ‘Markets trend to spontaneous order. Bureaucrats create chaos in markets’. This will end in tears – again.

    A question. How come a failed institution – the FSA – is still doing the same stuff that caused it to fail in the first place?

  8. The FSA could usefully ask consumers “how much is platform x being paid for providing the service to you”. I’ve seen answers ranging from nothing to the difference between AMC and TER in the case of HL customers and none getting it right without prompting. That’s not impressive when the current situation relies on consumers knowing what they are paying and monitoring it because of the conflict of interest between platform and consumer over who gets what share of the fund rebate.

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