The FCA has taken its first steps to address potential consumer harm arising from pricing complexity and a lack of transparency in D2C investment platforms, as part of a proposed package of remedies addressing competition issues in the space.
In its interim report following its 2017 Investment Platforms Market Study, the Financial Conduct Authority (FCA) said it had found low levels of satisfaction on price competition among users of direct-to-consumer (D2C) platforms. While the regulator found 39% of non-advised consumers who have invested through platforms said they choose a platform based on the price they will be charged, they are often not "shopping around", with 29% "either not knowing whether they pay charges for investing via a platform or thinking they do not pay any". FCA threatens to name-and-shame platforms on ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
