Cofunds predicts 'short-term pain' following legacy ban

The Financial Conduct Authority's decision to ban rebates on legacy business from April 2016 is set to be a painful one for the industry, according to Cofunds.

Last month Investment Week revealed the 2016 "sunset clause", which will force platforms to move all clients to clean share classes within a two-year period of the platform paper's implementation in April 2014. "The short-term pain will be felt across the board, but the degree to which any platform suffers will heavily depend on the how far it has already embraced clean and transparent pricing," said Cofunds director of marketing Verona Smith. "The sunset clause will be a challenge for everybody." However, newer wrap platforms were quick to point out it would be older fund supermar...