'PROD': Can rules help bring down platform switching costs?

'Standardised approach simplifies and saves costs'

Tom Ellis
clock • 4 min read

PROD rules are driving advisers to take a client segmentation approach to platform selection - so, asks Tom Ellis, can businesses kill two birds with one stone by getting in step with the regulation?

The Financial Conduct Authority (FCA) believes the time and resource advisers spend on the suitability process when moving clients from one platform to another is excessive. It said as much in its platform market study interim report back in July when it explained it was considering whether it should clarify its expectations through guidance for advisers who charge clients for switching platforms. This is because advisers told the regulator they treat a platform switch as an advice event, which means the process requires the production of a suitability report - and so extra fees for the ...

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