The Financial Services Consumer Panel has called for a total ban on platform rebates.
The FSCP platform position paper, published today, calls on the FSA to exercise greater scrutiny of the platform industry and suggests a banning of rebates will give transparency over relationships and charges.
The majority of platforms and many advisers have called on the FSA to over-turn its proposed ban on cash rebates. However, the FSCP says the FSA has not gone far enough and that a total rebate ban would enable effective competition.
Financial Services Consumer Panel chair Adam Phillips says: “It is essential that there is effective competition between product providers and amongst platforms so that consumers get a fair deal from their investments. Platforms are an increasingly important form of retail distribution and it is crucial that the principles of the FSA’s retail distribution review are not compromised.”