FSA outlines rules on paying adviser fee via platform cash account

The FSA will allow platforms to facilitate the collection of adviser charges, but says this must be done to the same standard as product providers.

Platforms would need to "obtain and validate" instructions from a customer to pay an adviser charge, the FSA says in a consultation paper (CP) published today. Any payments taken from a customer's account for adviser charges would need to match payments then made to their adviser firm, and a customer would need to be able to stop the payment of ongoing fees. The FSA says most respondents to its March discussion paper on platforms felt facilitating payment of adviser charges was preferable to alternative methods, such as using multiple share classes, and that cash accounts on a platfor...