Hargreaves Lansdown is confident its business model has the flexibility to cope with the ban on platform rebates proposed today by the Financial Services Authority (FSA).
The regulator has confirmed its intention to ban rebates from fund groups to platforms, even though a number of groups rely predominantly on this as their main source of income. Wealth manager Hargreaves said the ban was "no surprise", adding it is looking at a number of alternatives to generate revenues. In a stock exchange announcement, it said: "We do not currently believe any potential changes to our business model to respond to the FSA's RDR (Retail Distribution Review) proposals will materially affect our service levels or profitability given our strong client base, high asset r...
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