Paul Shaw and Paul Williams (Bryan Cave Leighton Paisner) examine a recent tribunal decision on the nature of annual payments and platform agreements.
Hargreaves Lansdown (HL) offered retail investors the ability to use its 'platform' to make and manage investments. 'Platform' is a word with many meanings. HL's platform was a service provided via the internet that:
permitted HL's customers to buy and sell investments generally in collective investment funds; and
provided custody for the investments they bought.
Before 6 April 2014 HLs customers did not pay HL for using its platform; on the contrary HL paid its customers 'loyalty payments' because they used it. Importantly the loyalty payments indirectly came from the customers' own money:
Customers invested in various 'funds' (for example open-ended investment companies (OEICs)).
Each fund paid an investment manager an...
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Paul Shaw and Paul Williams (Bryan Cave Leighton Paisner) examine a recent tribunal decision on the nature of annual payments and platform agreements.
Hargreaves Lansdown (HL) offered retail investors the ability to use its 'platform' to make and manage investments. 'Platform' is a word with many meanings. HL's platform was a service provided via the internet that:
permitted HL's customers to buy and sell investments generally in collective investment funds; and
provided custody for the investments they bought.
Before 6 April 2014 HLs customers did not pay HL for using its platform; on the contrary HL paid its customers 'loyalty payments' because they used it. Importantly the loyalty payments indirectly came from the customers' own money:
Customers invested in various 'funds' (for example open-ended investment companies (OEICs)).
Each fund paid an investment manager an...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
