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Tisa and platforms press FSA for delay to cash rebate ban

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.


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. What’s wrong with receiving the cash rebate? I’ve got my ISA with a firm who chargezero commisison when buying funds, and they will pay much of the rebate to me. This is why I chose them – who is this ridiculous meddling helping? How is this not treating the customer fairly? It’s going to mean the customer is treated more UNFAIRLY.. All of this really is a load of meddlesome rubbish from the FSA. They are just doing something for the sake of being seen to be doing something, and it doesn’t help anyone at all.

  2. Yet again the FSA refused to comment.

    Yet another reminder that you don’t necessarily have to pay peanuts to get monkeys.

  3. The FSA have declined to comment – but that is because they haven’t yet released the rules – clearly, it would be innappropriate for them to comment on what is conjecture – despite what we believe is certain to be included in those rules.

    Let’s wait for the rules, and then maybe expect some comment from the FSA on this matter.

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