View more on these topics

Platforms slam Skandia for backing rebate ban

The platform industry has hit out at Skandia for going against the views of the majority of providers and advisers in supporting a ban on cash rebates.

The main platforms, including Ascentric, Nucleus, Novia, Transact, Fidelity, Standard Life, Axa, Aviva, Raymond James and 7IM, last week submitted a joint response to the FSA’s consultation paper on platforms outlining their opposition to the cash rebate ban. The FSA announced plans to ban cash rebates as part of its platform consultation last Nov-ember. The proposal has been widely criticised by advisers and platform groups.

Skandia declined to be part of the joint submission and says it is in favour of the ban. It says it can sympathise with the FSA’s view that rebates and adviser charges must be separated.

Forty Two Wealth Management partner Alan Dick says: “Skandia seems to represent the lunatic fringe of platform management. Cash rebates are the only transparent, sensible thing to have. If we start going back to the dark ages of manip- ulating rebates, then nobody has a clue where the money is going.”

Avalon director Harry Kerr says: “I am surprised at Skan-dia’s view because anything that may lead to an increase in costs for the client is surely a poor idea.”

Transact head of marketing Malcolm Murray says: “Skandia must have a very good reason to vote in favour of a ban when everyone else is dead against it. Unfortunately, nobody else seems to be privy to this reason.”

Cofunds was also not part of the joint submission. It says it is against a ban on cash rebates and had already submitted its own response and a joint resp-onse with the UK Platform Group and did not feel a third response was necessary.

Recommended

1

Carby Caerus Wealth duo are recruited by Openwork

Openwork has recruited two directors from Keith Carby’s new business Caerus Wealth Group. Peter Smith and Mike Starkie will join Openwork as national development directors this month. They will work with the recruitment and development team and will be recruiting, training and inducting new advisers to the network. The pair joined Caerus Wealth last September […]

4

Recovering FSCS claims

In an earlier article I offered some initial thoughts on how consumer protection could be offered, and in my opinion improved, by learning from other markets. Let me follow that theme still related to the FSCS and the effects of the Keydata collapse. You buy a house. You insure the house. You do not rely […]

JPM aims to raise capital for trust with C-share issue

JP Morgan intends to raise further capital for its global emerging markets income trust through an issue of conversion shares. The C-share offer is designed to meet demand from inves-tors seeking income from emerging markets. JP Morgan says that interest in the trust has been strong since its launch last July. Managed by chief investment […]

1

Why should we pay for the FSCS TV advertising?

I know we all have to pay towards those who have unfortunately lost money either by poor advice or fraud or other failures which consumers should not have been subject to, which is why the Financial Services Compensation Scheme was set up but should we be paying £3.5m for marketing cost of the FSCS and […]

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