FSA to ban platform rebates; execution-only included

The Financial Services Authority (FSA) has this morning confirmed its intention to ban both payments from providers to platforms and cash rebates to consumers.

In a consultation paper, the regulator said the way in which the consumer currently pays for the platform service "hinders transparency" and "has the potential to negatively affect competition in the market". It said, in line with the changes introduced on adviser charging in the Retail Distribution Review (RDR), it does not feel product providers should be able to "buy" distribution. The ban would affect both the advised platforms market and non-advised (direct to consumer) platforms. Meanwhile, the regulator has also confirmed its intention to ban cash rebates to consumers - but ...