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Platforms confident on equal treatment on payments ban

Platforms are confident that the FSA will extend any ban on payments between product providers and platforms to include execution-only propositions.

In its August platform policy statement, the FSA said it would be “desirable” to ban provider payments to platforms but said it wanted to conduct further research into the implications of the rules.

The FSA added it would also look into the difference between the treatment of rebates for advised and non-advised sales.

The regulator is expected to publish its final rules this month.

Transact head of marketing Malcolm Murray says he expects the FSA will extend any ban to include execution-only platforms.

He says: “I cannot see how the FSA could draw a line between advised and non-advised platforms in this way. It must force all platforms to adhere to the same rules.”

Novia chief executive Bill Vasilieff says: “It would obviously be unfair if non-advised platforms and advised platforms are treated differently. I think the FSA will bring non-advised platforms under the same rules as advised in the coming paper.”

CWC Research senior consultant Clive Waller says: “Advised and non-advised platforms carry out the same administration functions and should therefore all be treated the same.”

AJ Bell marketing director Billy Mackay says: “I will not be surprised if execution-only platforms are brought into scope along with the advised sector.”

An FSA spokeswoman declined to comment on the upcoming platform paper but says: “We have set out our intention to prevent platforms from being funded by payments from product providers and we have expressed our intention to keep the non-advised market under review.”



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