Rebate ban to cost platforms up to £10m a year

The ban on rebates from fund managers to platform providers is to cost platform operators up to £10m a year, the FSA has said.

The regulator said its move to ban payments from fund managers to platforms would be the main cause of ongoing costs for the latter, which could be as high as £9.8m. One-off costs for introducing the FSA's platform proposals are estimated by Deloitte to be between £11.6m and £37.8m for providers. Fund managers face one-off costs of £3.7m, with ongoing costs of £1.1m.