Responding to the Retail Distribution Review
- August 2011
- 126 KB
- Platforms: PS11/9 signals the start of a frenetic period
- Area: Insurance
The FSA published its long awaited Platforms Policy Statement (PS11/9) on 1 August 2011 in response to feedback from the industry to its original proposals in Consultation Paper (CP10/29). Whilst the Policy Statement provided clarity in a number of areas, a definitive view was not given in the area of the proposed ban on cash rebates or on payments to platforms, where the FSA is now proposing to conduct further research and analysis into the impact of such bans.
The publication of the Policy Statement now signals what should be the start of a frenetic period for platforms and their users, as they try to understand how to comply with the new rules/guidance, how to cater for the possible outcomes of further FSA research and ultimately how to best prepare for the RDR deadline of 31 December 2012.
Platforms’ business models vary across the industry. As a consequence the response to each challenge faced as a result of the RDR can also differ significantly. However, there is no getting away from the fact that the task faced by all platforms over the next 12 months and beyond is huge, and many questions remain unresolved. As firms absorb the FSA’s latest guidance and assess its impact, this paper looks to explore some of the key challenges facing the industry.