The Investment Platforms Market Study, the terms of reference for which the Financial Conduct Authority (FCA) published today, will examine whether advisers have a positive impact on platform costs and quality.
The regulator has said it plans to complement its analysis of supply-side issues by exploring how the interaction between consumers, their advisers and platforms affects competition. "In doing so," it added, "we will explore the impact financial advisers have on competition between platforms." According to the FCA, a principal-agent relationship often exists between consumer and adviser in this area because, when consumers receive financial advice, their adviser may also recommend a platform to use or may choose a platform on behalf of their clients. FCA focuses on 'potential to disto...
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