Today's confirmation that cash rebates will be banned is a 'blow' to wrap platforms and presents a 'significant challenge' to their business models, fund supermarket Skandia has said.
In this morning's consultation paper, the watchdog confirmed its intention to ban cash rebates - payments from product providers to consumers via platform cash accounts. Unit rebates used to purchase additional fund units will continue to be permitted. Skandia, which cut itself adrift from fellow platforms by supporting the mooted ban on cash rebates in favour of unit rebates, hailed the decision by the FSA to press ahead with the ban a victory for consumers. "Today's decision by the FSA is a victory for good customer outcomes over industry self-interest," said Skandia UK chief exe...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
