FSA delays decision on cash rebates

The FSA says more research is needed before it can make the final decision on whether to ban cash rebates.

The regulator said although it wants to ultimately ban both fund manager rebates and cash rebates paid to consumers it will delay a decision pending more research. Ultimately, it said it wants to move to a situation where cash rebates are banned, but it needs to analyse the impact on consumers and on firms' business models before it proposes any new rules. It added it does not want to see payments made from product providers to customers via platform cash accounts. This, it said, could disguise the cost of the adviser charge and has the potential to cause product bias. "We do not f...