The Financial Conduct Authority’s platform policy statement, which will confirm final rules around platform pricing and rebate post-Retail Distribution Review, will be published on 29 April, FTAdviser understands.
In December last year (3 December), the Financial Services Authority confirmed to FTAdviser that the paper’s publication would be delayed until 2013.
Two and a half months later the regulator revealed the paper would be published in the second quarter of the year after being approved by the regulator’s board.
The deadline for responses to consultation paper 12/12 was in September, and publication was originally expected to come by the end of 2012, with new rules therein being introduced one year later.
The much-anticipated paper has been the source of much speculation. One point of focus has been the widely-anticipated ban on cash rebates. Earlier this year (19 February) the FSA revealed it was considering making a concession to the proposals which would continue to allow rebates of £1 or less.
One reason for the paper’s initial delay was HM Revenue and Customs wanting to clarify its position on how rebates would be taxed.
HMRC subsequently revealed that all rebates, be they units or cash, could be subjected to income tax. The news sparked a widespread reaction, with some commentators claiming it could spell the end of rebates altogether.
The prospect of having rebates taxed has hastened a move to clean share classes by several platforms including Cofunds, Standard Life and even staunch pro-unit rebates platform Skandia.
