FSA stops short of applying rebate ban to life cos

The Financial Services Authority (FSA) has suggested it will not extend its proposed ban on platform rebates to life companies, but has promised to explore the issue further.

The regulator today confirmed its intention to ban both fund manager rebates to platforms and cash rebates to consumers. But it stopped short of saying it would apply the ban, if it is finalised, to non-platform services including SIPP operators, life companies offering life wrappers, discretionary fund managers and execution-only brokers. Many had expected it would read across the rules to non-platform sectors, arguing not doing so could create market distortion. The watchdog said the platform market is different to the life market because the former offers "additional" services, ...