FCA to assess firms' vertical integration in platform market review

Concerns of conflicts of interest

Tom Ellis
clock • 2 min read

The Financial Conduct Authority (FCA) has said it will assess firms' vertical integration and "the entire value chain" of investing, as well as the platform market, in its upcoming platform market review.

In its asset management review published on Wednesday, the regulator said vertical integration - where a provider also owns an advice firm - raised questions about competition in the market. The FCA also noted advice costs were often claimed to be one of the largest portions of the value chain and said a number of respondents put forward concerns of conflicts of interest in vertically integrated firms. The regulator said: "Within the advice market, vertical integration of advice, platform and fund management in some firms, the growth of model portfolios and the role of third party rat...

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