FCA to permit unit rebates

The Financial Conduct Authority (FCA) is to permit rebates from fund managers to platforms in cash, provided it is passed on to consumers in full in the form of additional units.

The Financial Conduct Authority (FCA) - successor to the Financial Services Authority (FSA) - confirmed today that, as expected, cash rebates on both advised and non-advised platforms will be officially prohibited. But it said its rule banning cash rebates to consumers would not prevent a platform from receiving a rebate from a fund manager in cash, provided this is passed on in full to the consumer in additional units. The changes are due to come into effect from 6 April 2014, though platforms will have to ensure it sets out a clear platform charge on both new and legacy business fro...