FCA publishes policy statement PS 13/1 on platform service providers and rebate payments

Following the Financial Services Authority’s (FSA) June 2012 consultation paper, the Financial Conduct Authority (FCA), assuming responsibility for publishing the rules from its predecessor, has published its policy statement addressing payments from product providers, such as fund managers, to platform service providers and consumers. In summary, platform services must be funded using charges disclosed to end investors with a ban on payments from product providers to platform service providers and on product providers rebating platform charges to consumers.

In summary, platform services must be funded using charges disclosed to end investors with a ban on payments from product providers to platform service providers and on product providers rebating platform charges to consumers. This will require significant changes to established practice in the retail funds industry, however, the Policy Statement is long awaited and comes as little surprise to market players.

This Policy Statement has been described by some market commentators as the “final piece in the jigsaw” of the FSA’s Retail Distribution Review (RDR). The RDR has the broad objective of limiting any negative influence product providers may have on product distribution and aligning the interests of intermediaries, such as platform providers, with the interests of clients. This includes banning any arrangements that could be analogous to commission payments. Platforms that currently have non-transparent funding arrangements with product providers may also favour certain products over others in terms of distribution. The FCA therefore hopes that banning such arrangements will encourage competition in the market by de-incentivising the relationship between platform service providers and product providers and providing investors with more choice…

If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from DLA Piper

View more briefings from DLA Piper

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

3 Noble Street
London
EC2V 7EE
UK
http://www.dlapiper.com

Turnover (£m): 1,566.29
No. of lawyers: 3,961 (UK 200)
Jurisdiction: global
No. of offices: more than 75
No. of qualified lawyers: 625 (International 50)

Jobs