I’ve been thinking about how quickly time flies this week as we celebrated my beautiful Bee’s first birthday. She’ll be waking me up at 3am for different reasons before I know it. The point is that RDR is upon us and as I talk to very smart and very senior people in the distribution, administration and fund manager worlds, no-one has really got a clue what is going on in relation to platforms and the issues from the consultation paper.
No-one know what rebates will or won’t look like. Cash rebates or unit rebates? Dunno – although cash rebates are by far the preferred and most sensible option in my humble opinion. Unit rebates mean a whole lot of clunky work and for what? A 1% platform P share class, including a 25bps “admin fee” for platforms? Or a 75bps platform share class and an unbundled world? What does that mean for the 1.5% XO world when customers realise they could go direct to fund manager and pay, say, 1%. Is this back to the future?
It’s quite disconcerting when private conversations with those at the helm reveal pretty much everyone without exception has no real certainty about what they need to build or develop. The Financial Services Consumer Panel waded into the debate this week, suggesting that all platform rebates should be banned under a new remuneration structure subject to a separate timescale than RDR in order to improve consumer outcomes. Subject to a separate timescale than RDR.................Hmmmm. What I do know is that Baby Bee will be blowing out two candles before we know it and the clock is ticking. If the FSA cannot provide clarity in the next two or three months then they need to postpone this piece of the RDR to give groups the chance to accommodate it properly.
Have a great weekend all
Holly
Transact offers London & Capital managed portfolios
Fri, 18/03/2011 - 09:00Transact has incorporated wealth manager London and Capital’s managed portfolios onto its platform.
Voyant UK integrates with FinaMetrica
Thu, 17/03/2011 - 16:20IFA technology firm Voyant UK has integrated its platform, Voyant Adviser, with FinaMetrica’s psychometric risk profiling.
IFA and James Hay in dispute over pension error
Thu, 17/03/2011 - 13:00James Hay is embroiled in a dispute with IFA firm Bryden Johnson after calculation errors meant the provider overstated a client’s pension by £100,000.
How can platforms help advisers on RDR?
Thu, 17/03/2011 - 09:00ifaonline
Zurich UK Life’s Matt Connell and Richard Howells discuss how platforms will help advisers in their quest to be RDR ready.
Blog: What you need to know about your platform
Thu, 17/03/2011 - 09:00ifaonline
Shaun Sandiford, distribution director at AXA Elevate, takes a closer look at the FSA Investment Suitability Report and what advisers need to know from their platform Shaun Sandiford, distribution director at AXA Elevate, takes a closer look at the FSA Investment Suitability Report and what advisers need to know from their platform
Brooks Macdonald to launch new funds business
Wed, 16/03/2011 - 12:01Firm posts £3m profit and unveils plans to launch new funds business led by former SWIP sales and marketing director Simon Wombwell.
Collins Stewart assets reach £8bn after Andersen Charnley buy
Tue, 15/03/2011 - 11:01Wealth manager Collins Stewart has received a £2 billion asset boost driven by the acquisitions of financial planning firm Andersen Charnley and discretionary managers Corazon Capital.
Zurich increases Openwork loan and offers advisers preference shares
Tue, 15/03/2011 - 09:56Provider increases loan facility to £30m and offers the network’s staff and advisers 30 per cent of preference shares in funding restructure.
FSCP: Ban all platform rebates
Tue, 15/03/2011 - 08:50ifaonline
All platform rebates should be banned under a new remuneration structure subject to a separate timescale than RDR in order to improve consumer outcomes, according to the Financial Services Consumer Panel (FSCP).
Wellington and Sterling McCall in new model merger
Tue, 15/03/2011 - 08:00Wellington and Sterling McCall have merged in a deal which will see Sterling McCall's funds under management rise to £220 million.
Platform usage increasing 'significantly', says Defaqto
Mon, 14/03/2011 - 14:45ifaonline
The number of advisers planning to move to a platform-based business in the run up to RDR has increased “significantly”, suggests recent research.
Consumer Panel says FSA should ban all platform rebates
Mon, 14/03/2011 - 14:33The Financial Services Authority should clamp down on platform unitised rebates in addition to its ban on cash rebates, according to the Financial Services Consumer Panel.
40% of IFAs plan to use platforms to become RDR ready
Mon, 14/03/2011 - 13:48A survey by financial research company Defaqto shows 40% of IFAs are planning to adopt platforms in a bid to help them transition their businesses for the retail distribution review.
