The Financial Services Authority (FSA) has warned that platform providers which currently reward advisers or networks for high business volumes will have to stop the practice after the retail distribution review (RDR).
Speaking at the Personal Financial Society platform conference, FSA technical specialist Rory Percival said: ‘It’s just commission by a different name.’
Percival said he could think of two or three arrangements currently in existence which would fall foul of the rules come 2013.
‘I can think of two or three examples of firms where that happens at the moment, and that’s permitted at the moment but will not be permitted with the coming RDR rules.’
Source: CityWire. Read full article here.