He said the lang cat’s own analysis showed platforms’ fund discounts were often only available on services that charged a higher-than-average initial fee, negating any value for the client.
He said: “The FCA is still in the space that it thinks there should be discounts – but it is very counterintuitive, especially if there are barriers to exiting the fund,”
The FCA has said it will publish its interim report on the industry by next summer.
Study to cover all aspects of platforms
Topics to be explored by the FCA:
• Barriers to entry and expansion
• Commercial relationships between platforms, asset managers, fund rating agencies
• Business models and platform profitability
• The impact of advisers and interests of end investors
• Customer preferences and behaviour
IN NUMBERS
Summer 2018
Date by which FCA will publish its interim report into the platform market
78%
Platforms account for more than three-quarters of retail investment assets
