Adviser platforms have 'inherent conflict' - FCA

Will address issue in platform review

Tom Ellis
clock • 1 min read

Adviser platforms suffer from an 'inherent conflict', the Financial Conduct Authority (FCA) has said in its Annual Competition Report.

According to the regulator, the conflict arises because platforms are selected, and usually used, by the adviser while being paid for by the client. It said addressing this issue was a "high priority".  The financial watchdog revealed it would launch an investigation into the platform market in April after its Asset Management Study interim report "highlighted a number of areas for concern and identified potential competition issues in the investment platforms market". Last week, the FCA also revealed it would assess firms' vertical integration and "the entire value chain" of investin...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Why the FCA's data request demands more than compliance

Why the FCA's data request demands more than compliance

Shift towards data-driven regulation arrives at a 'pivotal juncture'

Claire Cherrington
clock 31 July 2025 • 4 min read
The FCA and non-financial misconduct: Updated rules and guidance

The FCA and non-financial misconduct: Updated rules and guidance

'The FCA hopes that the proposed amendments will increase clarity and consistency'

Claire Cross
clock 29 July 2025 • 4 min read
FOS interim chair named following unsuccessful recruitment campaign

FOS interim chair named following unsuccessful recruitment campaign

Liam Coleman appointed

Jen Frost
clock 28 July 2025 • 2 min read