The paper will ban cash rebates and platform services must now be paid via a platform charge which is disclosed to and agreed by the investor.
This follows a decision earlier this month by HMRC to make rebates to consumers taxable, leading to a rush of firms to announce clean share classes.
David Thompson, managing director of Elevate at AXA Wealth, said: "If the HMRC announcement sounded the death knell for rebates then this paper will help lay them to rest.
"Some commentators have suggested that an end to all rebates may impact the competitiveness of platform offerings. We are not sure this is the case. We think it will mean that competitive forces work better across the market, and funds will need to compete with each other and price competitiveness in the round will form a key part of this.
"We believe rebates are complex and confusing, and just mean that clients with significant rebates end up paying significant tax."
The new rules will come into effect on 6 April 2014 but the FCA has introduced a so-called 'sunset clause' where firms will have two years until 6 April 2016 to move existing customers to the explicit charging model.
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Ian Gorham, chief executive of Hargreaves Lansdown, said: "We are pleased to have confirmation of these rules, bringing the clarity we have awaited for some time. At first sight the rules, implementation timescales and "sunset clause" are broadly as expected. We have planned for all of these.
"The majority of work required to comply is already either in progress or complete so we expect to be ready in good time. We remain confident in our ability to provide clients with compelling services and competitive pricing in future."
Ed Dymott, head of business development at Fidelity, said: "We were well aware of the proposed sunset clause and we feel it is a sensible approach to transitioning customers to the new rules. The two-year period gives platforms an ability to manage this process as efficiently as possible, although there is no reason why a platform should wait until 2016. Our one concern is around what this means for the advisory market, as it is likely they will need to transition in line with this process."

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