The Investment Management Association (IMA) is pleased to see the much-anticipated final rules on payments from product providers to platforms published today by the Financial Conduct Authority (FCA).
The rules apply to all providers of "retail investment products", including funds.
Julie Patterson, IMA Director of Authorised Funds and Tax, said:
"These rules provide some much-needed certainty that enables fund managers to take informed decisions about the range of share classes they wish to offer and the appropriate setting of the annual management charge.
"We share the view that the new rules on payments to platforms should relate to both new and legacy business. Allowing indefinite payments on legacy business could cause distortions in the platform market. It is also a pragmatic response to enable a reasonable period for system changes. We continue to want a sunset clause for payments to advisers for the same reasons.
"The rules allow payments for certain services to continue to be charged by and paid to platforms by product providers. There are areas where the IMA may be able to facilitate efficient and low cost information sharing, principally in connection with regulatory requirements pertaining to data flow from platforms to managers. The IMA is engaged in initial discussions with its members and platforms about the possibility of the IMA acting as a central hub."
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