As with the asset management study, FCA’s platform market study published today is not simply about the price charged by retail investment service providers, it is about the value they deliver to investors.
“The FCA has set a very broad scope for this study; the terms of what constitutes a platform can include online portals, life insurance companies, wealth managers and banks; in effect any organisation providing a retail investment service is likely to come under scrutiny,” said Tom McPhail, head of policy at Hargreaves Lansdown.
“This study recognises the vital service platforms now provide to millions of people, helping them to save and invest for their future. The advice gap remains, and platforms have an important role to play in delivering guidance and support to investors, many of whom need help if they are to invest with confidence.”
Mr McPhail also stressd that platforms can bring pressure to bear on asset management costs, negotiating discounts for investors, promoting good funds and highlighting poor performers.
Hargreaves Lansdown is a provider of investment and pension services in the UK.