Yesterday, the FSA published the long-awaited Policy Statement on platforms. We have summarised the main points and our reaction to these in the document below (we also include the full FSA policy paper for those who have not seen it). The headlines are that bundled pricing and the payment of cash rebates to clients are imminent Dodos. The problem is the paucity of detail and guidelines surrounding this.
We include comments from a number of platform bosses which vary from “despair” to “a triumph for transparency”.
One CEO observed that “At times, it seems that the recipe for PS11/9 was to take some agreeable principles, add a large helping of regulatory opinion and bumper-sticker sloganeering and then garnish with just a pinch of facts.”
The clearest part of the Statement, to our minds, is Annex Three which is a must-read for financial advisers with any questions about FSA expectations on platform use. The clearest thing we have read from the FSA on this. As for the rest of it….well, watch this space really, and look out for the inevitable consultation process on bundled pricing to begin.
“….the responsibilities placed on advisers by the RDR and the market forces at work in what is now a very competitive platform market will obviate the need for regulatory intervention on these transparency and pricing issues. Platforms will very quickly adapt to provide what advisers require to remain compliant”, opined one CEO. Could be, could be. And by the time we all wade through sunset clauses on legacy commission (do what?!) this could well be the case.
One of the most surprising new(ish) things to surface? To our minds, the suggestion that execution-only platforms may not be as immune to all of this as previously thought.
Many financial advisers we speak to tell us that “this is doing my head in.” If that is your technical response, please feel free to contact Emma Napier on 0207 449 9080. We’re very happy to talk to you!
Holly
YOU MUST BE LOGGED IN TO VIEW ATTACHMENTS
