FSA to issue separate platform disclosure paper

The FSA plans to publish a separate consultation paper on how platforms should disclose their charging structures, including fund manager rebates, on top of its second consultation document in February.

Today, the FSA had a change of heart on banning rebates between fund managers and platform providers as such a move could risk increasing charges for consumers. However, there will be increased disclosure of these arrangements and other platform charges to advisers and their clients under a new set of rules requiring further consultation. Peter Smith, FSA head of investments policy, says: "The main reason for the change is that we think we can deliver what we need to without specifying to platforms how they get paid for what they do. "What they do in terms of administration service...