The Tax Incentivised Savings Association and platform providers are calling for the FSA to delay the implementation of its cash rebate ban for 18 months to allow them time to make software changes.
The FSA’s platform policy statement, which will set out the final rules on cash rebates, has been delayed from the second quarter and is now expected to be published later this month.
Under the regulator’s proposals in its discussion paper last November, cash rebates will be banned from January 2013.
In June, industry experts told Money Marketing the FSA is unlikely to reverse the ban, despite widespread industry opposition. Tisa says if the ban goes ahead, the majority of platforms will face considerable work to make sure their systems can cope with the change.
Director of policy Malcolm Small says: “Such a tight timescale leaves the industry open to extremely high levels of operational risk. If anything goes wrong, platforms will not have enough time to fix it.”
Avalon director Harry Kerr says: “The FSA has created this problem by delaying the policy statement and it would be fair to give people a bit more time.”
Aviva Wrap marketing manager Phil Ralli says: “It would be good to give those providers who are struggling a bit more time, otherwise some may not be ready.”
Ascentric head of marketing Dominic Ventham says: “If Tisa is able to convince the FSA to extend the deadline, then I do believe it would help the industry as a whole to implement robust solutions.”
CWC Research senior partner Clive Waller says: “There is simply not enough time to carry out the necessary work to comply with the ban.”
The FSA refused to comment on the issue.