“AXA Wealth is encouraged by FSA policy statement PS11/9 on platforms, and it provides some of the clarity needed to ensure that platforms are able to comply with the requirements of RDR.
“We are disappointed that the FSA has chosen not to change its position on the ban on payment of fund manager rebates to clients in cash. However, deferring the consideration of this, combined with some further detailed thinking around their conclusion that a ban on fund manager payments to platforms is their desired outcome, appears to be a sensible approach.
“Hopefully, this will not cause ongoing uncertainty and speculation within the industry, at a time when we all need to focus on meeting customer needs in the run up to, and immediately after, RDR implementation. We hope that the FSA will confirm quickly that the timescale for completion of the work on ‘Payments to platforms and consumers’ will fall well outside of the pressing timescales that are now associated with RDR, and that this period of reflection will give sufficient time (perhaps 2014/2015) for proper consideration in light of the reality of a post-RDR world.
“In terms of pricing, given the unique nature of Elevate in offering both Composite (fund supermarket) and Explicit (wrap) pricing structures, we are already well placed to support advisers in addressing the needs of the widest spectrum of clients, both today and after RDR is implemented.
“From launch, Elevate recognised the benefits of portability to advisers and their clients and already provides the option for the re-registration of assets on and off of the platform at no charge. By the FSA insisting that other providers do the same this will further improve adviser and customer choice in the platform market.
“AXA Wealth remains fully aligned to the principles of RDR. AXA Wealth believes RDR has the potential to deliver real benefits to the UK financial services market for the benefits of clients, and we remain committed to, and confident of our ability to deliver these changes in time for the RDR implementation date of 31 December 2012.”
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