The Financial Conduct Authority has implemented its proposed ban on cash rebates, while stopping short of banning unit rebates or cash rebates of less than a pound.
*Platform services must be paid for through a platform charge disclosed to and agreed upon by the consumer.
*Some payments are exceptions to the rule. Allowed payments include payments for the work incurred correcting a pricing error by the product provider; payments for the work incurred in dealing with a corporate action by the product provider; and payments for the work incurred in providing the product provider with management information as to who is invested in the product.
*Payments in relation to advertising products on the platform are also allowed, as long as the payments do not help a product provider gain access to a shortlist of funds, influence any ranking of products, or otherwise channel business to the provider.
*Cash rebates are no longer allowed. However, unit rebates and cash rebates of less than £1 are still allowed.
*Advisers are responsible for making sure the platforms they use are compliant with the new rules, and must take reasonable steps to ensure the platforms they use present their retail investment products without bias.
*Rules come into effect on 6 April 2014. However, platforms have until 6 April 2016 to implement a platform charging system for legacy business.
http://www.fca.org.uk/your-fca/documents/policy-statements/ps-13-01
