The Financial Conduct Authority (FCA) has announced plans to take a close look at whether competition is working effectively between online brokers, also known as investment platforms.
The FCA will look at ‘potential competition issues’, including how online brokers charge consumers and whether they have the incentives and ability to put competitive pressure on asset management charges.
The review will take place next year, meaning that it will be a separate study from the FCA’s current report into the asset management industry, which is expected to be published in the second quarter of 2017. But findings from the asset management study will be put forward and used as a basis for the platform report.
In November, when the FCA released its interim report into the asset management study, the regulator noted that it had seen examples of ‘some poor practice when platforms process switches’.
Full Content: International Business Times
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