View more on these topics

Method missing for disclosure process

The FSA has produced cost estimates for its proposals to disclose payments to platforms from fund managers without a concrete proposal on how firms will disclose this information.

In its consultation paper on the platform market published last week, the FSA proposes to keep rebates between fund managers and platforms, subject to “improved disclosure.” The FSA will consult with the industry over the best way to meet this requirement.

A cost-benefit analysis of these proposals is included in the paper, even though it is not yet known how these rules will work in practice.

The FSA estimates that platform operators will face £21.7m in one-off costs to set up the necessary IT systems and £3.4m in ongoing costs to regularly notify clients about the payments.

Fund companies are expected to face one-off costs of £2.9m due to the cost of renegotiating contracts and no ongoing costs.

Members of the UK Platform Group, which includes Fidelity FundsNetwork, Skandia and Cofunds, have previously floated the idea of a common disclosure document which breaks down total customer cost into individual charges.

Fidelity Investment Managers head of UK fund partners Ed Dymott says: “We believe that an industrywide disclosure document is the best way forward. The UK Platform Group has already started work on this and is engaging with the FSA over what this will look like.”

Recommended

Stephen Kavanagh

AWD looks for buys after ‘phenomenal’ turn-round

AWD chief executive Stephen Kavanagh says the firm is now in a position to acquire adviser firms in the run-up to the RDR, after posting improved results for the first nine months of this year. Earlier this month, AWD Chase de Vere’s UK division reported earnings of £3.9m in the first nine months, a sharp […]

ABI fears it could be powerless to fight gender edict

The Association of British Insurers has admitted it could be powerless to oppose gender equalisation if the European Court of Justice rules that underwriting on the grounds of sex should be banned. Critics have warned that if EU advocate general Juliane Kok-ott’s call for a ban is accepted in full by the ECJ, it would […]

Nationwide base rate mortgage pledge costs firm £300m

Nationwide has revealed that its pledge to cap the base mortgage rate 2 per cent above Bank of England base rate has cost the firm £300m in the six months to September 30, 2010. Nationwide says that with base rate currently at 0.5 per cent there is less incentive for borrowers to move product and […]

On best behaviour

Skandia Investment Group was forced to take evasive action on its UK best ideas fund earlier this year after several underlying managers failed to capture the market rally in 2009. The fund launched as an industry innovation in 2006, with the group asking 10 managers from different houses to pick their 10 favourite companies for […]

Happy while you work

Well we’ve had scorching weather (yes even up here in Scotland!) and now the Euros 2016 are on – you can’t blame people for wishing life was just one big holiday.  With all these distractions it sometimes feels like work just gets in the way of having a good time! But sunny day skivers are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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