Platform review delayed

dunstonh

The FSA has delayed the publishing the rules on the platform review until Q1, 2013 instead of end of this year.

This will have a likely knock on effect to implementation as the FSA has said previously that it will give providers 12 months to implement. So, rather than end of 2013, it looks like it is creeping into 2014.

The FSA said that the latest consultation paper raised a number of questions which it was now studying. In particular tax was a concern. The rebates and tax issues based on what the FSA said it wanted not being logical and most were against it. Hopefully, that will see the FSA change its mind to the more logical approach.

waiax73

Hi dunstonh,

interesting, can you post a link to the source please?

Thanks a lot

dunstonh

I've seen it in a couple of places now but here is one to keep you going:
http://www.investmentweek.co.uk/investment-week/news/2228813/fsa-set-to-scrap-end2013-implementation-deadline-for-platforms

phuket

Hi Dunstonh

Has the FSA paper been published yet? I can't find a mention online that it has. If not is it any clearer what it will recommend.

Thanks

dtaylor84

I've found this which suggests that it is now expected in Q2, probably by the start of May.

AlwaysLearnin

And so it drags on.....

dunstonh

I suspect the HMRC bulletin of a couple of weeks ago has caused a delay for the FCA. Although it effectively forces companies to move to clean share classes that havent already which is what the FCA wanted anyway.

Rollinghome

"The Financial Services Authority (FSA) will not set out finalised rules that platform providers will have to adhere to under its Retail Distribution Review (RDR) reforms until HM Revenue & Customs (HMRC) has clarified rules on the "tax treatment" of rebates and other payments, the regulator has said."
Dec 2012 http://www.out-law.com/en/articles/2012/december/tax-clarifications-required-before-platform-rules-are-finalised-says-fsa/

So it seems it was waiting for the HMRC ruling that caused a delay rather than the ruling itself.

dunstonh

HMRC came out with an unexpected outcome though. All the predictions had it that they would tax on post platform review arranged contracts. Or at least post RDR cases but not starting until 2014