Hargreaves: Fund group unit rebate overhaul ‘unnecessary'

Hargreaves Lansdown is telling asset management groups they do not need to overhaul their internal fund rebate systems before the arrival of ‘RDR 2‘ in 2014.

It said it would be better for providers to continue to pass cash rebates to the group, which it will then ensure are reinvested in additional client units. Financial Services Authority (FSA) proposals suggest fund rebates – repayments from fund groups to platforms taken from a fund’s annual management charge – must be passed back to clients in the form of additional units in a fund after 2013. Currently, rebates are paid back into clients’ cash accounts in many cases. The change, if approved, would come into force from 31 December 2013, exactly a year after the implementation of o...