Platforms lobby for FSA U-turn on 'unworkable' proposals

The FSA could be forced into a major U-turn on platform regulation as the UK's big three providers, with over 80% of total assets, labeled its proposals as "unworkable" in responses to the Discussion Paper.

Following the closure of its discussion period this week, the regulator aims to release a Policy Statement on platforms by the end of the year. However, the weight of lobbying against its current preferred options could see a major overhaul of its proposals over the summer. A main bone of contention is the FSA plan to end fund manager rebates to platforms, which would require a shake-up of current product charging structures on the main platforms. Skandia, FundsNetwork and Cofunds – the UK’s dominant platforms, administering £85bn – warn this would prove confusing and costly to con...