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.