Firms have responded quickly to the Financial Services Authority's platform paper released today, with most voicing approval.
The paper 'CP12/12 Payments to platform service providers and cash rebates from providers to consumers' states that the FSA is proposing to ban payments from product providers to platforms.
The new rules would be confirmed by the end of the year and platforms would need to be ready to implement any changes by 31 December 2013.
Ian Thomas CFPCM, Financial Planner at Pilot Financial Planning in Devon, said: "I think the drive towards transparency and banning payments to platforms from product providers is absolutely the right way to go.
However, he voiced concern that the changes could lead to "regulatory arbitrage" whereby some platform providers reshaped themselves as different providers to avoid the new rules affecting platforms.
Rob Stevenson, founder and director of Kingmakers Group business consultancy, said: "I'm absolutely 100 per cent behind it, it's laudable, it's commendable, it makes sense in this world of transparency and openness but it's going to need some serious financial education to deliver the benefits to the end user."
Ian Gorham, chief executive of Hargreaves Lansdown, said: "We welcome the fact FSA has clarified the timescale for changes to rules governing the platform market. This reduces the regulatory uncertainty that platform firms have faced to date while also giving adequate time to prepare.
"We remain relaxed about the overall outcomes of the RDR. While the RDR may have become rather over-complicated and drawn out, its original principles were laudable and it should hold no fear for companies with a loyal and satisfied client base."
A spokesman for Cofunds said: "We're extremely pleased to see that the FSA has followed through in its original decision on rebates.
"Rebates mask the real cost of the process and the decision to ban them is an essential step towards enabling people to accurately assess the value of the service they're receiving."