RDR platform paper: FSA to target charging, incentives and re-reg

The FSA's Sheila Nicoll has hinted today's Discussion Paper on platforms will hone in on rebates, transparency of charging and action the regulator can take to aid re-registration.

In a speech to the Association of Luxembourg Funds Industry (ALFI) yesterday, the FSA's director of conduct policy says the regulator acknowledges the term 'platform' applies to a wide range of services, which are not uniform and may have different issues associated with them.

In the Discussion Paper she says the FSA will discuss how it proposes to regulate platforms in the future and in particular ensure they are not used as a channel for product providers to continue paying commission to financial advisers.

"Neither do we want platforms to offer incentives to move investments unnecessarily between platforms, especially if consumers incur extra charges," she says.

She adds the regulator has been asked on several occasions about the acceptability of platforms and other firms continuing to receive payments from product providers now advisers will not be allowed to receive commission from the end of 2012.

"We have also been questioned about the transparency of incentives and charges on platforms in the longer term.

"In the Discussion Paper, we will consider the options available to us for platforms remuneration, such as making platform remuneration more transparent."

She also suggests the FSA may be taking a more active role in ensuring re-registration between platforms is pushed through with the providers.

"The lack of reregistration also presents a potential barrier to new entrants to the platform market and we will be discussing the options available to us to correct this poor outcome."

The FSA's final RDR policy statement and the Platform Discussion Paper are due out today.