RegulationMay 2 2013

Reaction: industry views on the ban

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Platform view

Verona Smith, head of proposition for Cofunds, said the transition to clean share classes would bring “some short-term pain for the industry”.

Adviser view

Chris Hannant, policy director for the Association of Professional Financial Advisers, said: “We fully support the FCA’s drive towards greater transparency. However transparency is not an end in itself. The FCA must be clear in its expectations and consistent in its behaviour. That means articulating its objectives, targets and key performance indicators so that government, the industry and consumers can evaluate whether regulation is working. It also needs to set out properly its expectations of the way firms should conduct their business and then be consistent in its regulation.”

Peter Hall, chief executive of London-based Bestinvest, labelled the rebate ban “RDR 2”, and claimed it offered clarity for investors and clear distinction between fund charges and platform costs.

Industry view

Ian Sayers, director general of the Association of Investment Companies, said: “The decision whether to include a product on a platform will now be driven by what consumers and their advisers want, rather than whether a product provider has paid for access.”

Andrew Power, lead RDR partner for professional services firm Deloitte, said the creation of a ‘sunset clause’ for legacy rebates would accelerate time scales and demand, in addition to hastening consolidation in the platform market.

Provider view

Gavin Oldham, chief executive of The Share Centre, said: “We look forward to competitive pricing across the industry. However we are concerned the FCA has been conservative with the full implementation date, leaving room for confusion among many existing investors for another three years.”

Ian Gorham, chief executive of Hargreaves Lansdown, said: “The majority of work required to comply is already either in progress or complete so we expect to be ready in good time. We remain confident in our ability to provide clients with compelling services and competitive pricing in future.”