FCA sets out new platform rules

BriberyThe Financial Conduct Authority (FCA), which is one of the two new UK financial regulators following the reorganization of the Financial Services Authority, has banned the use of payments to fund platforms. The payments, known as rebates, are to be replaced by platform charges paid by product providers which are agreed with the investor. The FCA says this will make the platform market more transparent. Currently, providers of investment products, such as investment managers, generally pay a rebate to some platforms in order to have their products included on a platform. This rebate comes from the annual management charge, which is paid by the investor to the fund manager. As a result, says the FCA, some platforms are able to give the impression that they are offering a free service, which means that the investor may not understand the true cost of the service provided by the platform. The FCA also says it can be difficult for investors to compare prices and products available on different platforms.  There is also a risk that these payments could lead to product bias in the investment market, as products offered by providers who are unwilling or unable to pay a rebate to the platform from their product charges may not have their products available to the investors using that platform. ©2013 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.