Competition is working well for most consumers using investment platforms, according to interim findings of the UK Financial Conduct Authority’s (FCA) market study into investment platforms, published Monday.
However, the FCA’s report reveals concerns about how platforms compete for particular groups of consumers. In response, the UK regulator is proposing measures to address these problems before they get bigger.
According to the interim findings, consumers who may benefit from switching find it difficult, or costly, to do; price comparisons are hard to make for certain clients; and, the information platforms provide about model portfolios makes comparison difficult.
The FCA’s proposals include measures intended to help strengthen competition between asset managers, measures to make it easier for investors and advisors to switch platforms, and reforms to tackle price discrimination.
“We know that competition is working well for many but it is important that the problems we have identified are addressed so that consumers don’t lose out. We have outlined a package of measures today to address the issues we have found, but we also want to see the industry step up, making it easier for consumers to transfer from one platform to another,” says Christopher Woolard, executive director of strategy and competition at the FCA, in a statement.
The FCA is seeking feedback on its proposals before finalizing reforms in early 2019.