Fidelity to ban cash rebates on SIPPs
Platform provider says it is simpler to ban rebates consistently across its products.
Fidelity has told Money Management that it will not allow cash rebates on its SIPP product, as well as its platform, despite it not being forced by the regulator.
Following the FSA’s platform consultation paper, released today, the fund supermarket claimed that it was “simpler” to implement the changes across all its products.
Ed Dymott, head of business development at Fidelity, said, “It is simpler to apply the rules consistently and it is simpler for customers to understand.”
He added that Fidelity would make the case to the regulator that the new rules should be applied across the industry.
However, Dymott claimed that it would not lead to the cost of a SIPP rising for the consumer, adding, “As a platform we make 0.25%, predominately from fund managers, and in our unbundled model we make 0.25%. We operate an effective model and see no reason for prices to increase or decrease.
“The point of RDR is to have a fair value exchange, price is only an issue if value is not being offered. I think we provide exceptional value.”
While the FSA has said that it welcomes views on whether the rules on platforms should be broadened out, at this stage it is not even consulting on whether SIPPs should be included.
However, a number have predicted that the consultation paper could lead to changes in the SIPP market, particularly at the lower end.