FCA to outlaw fund rebates

Michael Bow
Follow Michael
THE CITY watchdog will this morning unveil plans to ban money managers from funnelling rebates to fund supermarkets, in a bid to reduce conflicts of interest.

The Financial Conduct Authority wants to end cash rebates paid by asset managers to the fund supermarkets, or platforms, which are taken out of customer fees.

The move to make customers pay platforms directly for their services could lead to lower charges for savers, with fund managers cutting prices to get listed on platforms.