Why the FSA wants to ban fund manager rebates

The FSA today said it wants to proceed with its plan, originally mooted in March 2010, to ban payments from fund managers to platforms.

The regulator cited research from the Consumer Panel when it explained its reasons to proceed with an eventual ban on fund manager rebates. It said such payments could result in consumer detriment because they hinder transparency and fail to separate charges for consumers. The FSA also said fund manager rebates could lead to product bias and restrict consumer access to a wider range of investments. It has previously highlighted a concern that platforms receiving fund manager rebates might only list those products paying a rebate or list products in an order depending on the rebate ...