FCA has published the final report in its Investment Platforms Market Study. It has concluded that the market is working well for most consumers, but it is proposing changes that will make it less expensive and time-consuming for investors to shop around. The changes aim both to reduce the time and complexity of switching, and to ban or cap exit fees. FCA is currently seeking views from the market on how it could restrict these fees before it consults on them.
The current consultation paper seeks views by 14 June on:
- requiring platforms to offer consumers the choice to move units in funds common to two platforms without having to sell and repurchase the units
- requiring platforms to request a conversion of unit classes where necessary to enable an in specie transfer to take place and
- requiring platforms to ensure consumers moving to a new platform have the option to convert to discounted units where these are available
It also more generally asks questions about how, and to whom, the exit fees restrictions should apply.