UK FSA delays final rules on platforms until 2013
The UK’s Financial Services Authority(FSA) is planning to delay the release of its final rules for platforms until early 2013.
The regulator said in June it intended to give groups over a year to prepare for rule changes around the way they operate by releasing the final rules for platforms this year.
In its Consultation Paper 12/12, entitled Payments to platform service providers and cash rebates from providers to consumers, it said: “The FSA plans to publish its finalised rules on platforms before the end of 2012, allowing platforms over a year to implement the necessary changes to their business models before the rules come into effect on the proposed date of 31 December 2013.”
However, the final rules are now likely to be delayed until the first quarter of 2013, following a wave of responses from asset managers and platforms.
The June paper created a number of issues for the industry to tackle, chiefly the treatment of rebates to platforms, with the FSA pushing for clean share classes to be introduced in order to prevent asset managers from funding platforms.
In future, it wants platforms to be paid for their services by customers.
It also outlined plans to ban cash rebates from product providers to consumers using platforms on a non-advised basis, although no final rules will be implemented until 2014.
The UK FSA said the latest consultation paper had raised a number of questions, particularly around tax, which it was now studying.
“We are considering those points in discussion with HMRC and we will publish the final rules in due course,” a spokesperson said.
This article was first published on Investment Week