Is all this change really necessary and worth it? The answer is probably yes. It really is a once in a lifetime shift in the industry and the move to a more transparent market for the consumer has to be a good thing. The previous providers that dominated the industry, the life companies (for the younger reader, most have disappeared in the past 20 years), ultimately killed themselves as everything they offered was opaque, with the result that customers were disappointed with their returns and completely lost confidence in them. It will be worth it in the long run.
Bill Vasilieff is chief executive of Novia
Key points
Cash rebates are to be banned from 6 April 2014 but unit rebates will be allowed
The decision by HMRC that rebates will be taxed in the hands of investors may signal the end of rebates.
The move to a more transparent market for the consumer has to be a good thing.
