The Financial Conduct Authority (FCA) has outlined the scenarios in which the payment of cash rebates from providers to consumers can continue after a wider ban comes into force next year.
Earlier this year, the regulator confirmed a ban on cash rebates to retail clients of both advised and non-advised platforms on new business from April 2014, though rebates up to £1 or in the form of additional units would be permitted to continue. But a number of stakeholders requested to know what effect the ban would have on legacy business. In its latest quarterly consultation paper (QCP), the FCA outlined the proposed cases in which these payments could continue. They may continue when: a) no change is made to the retail client's investment in the relevant product or to the...
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