As part of its Investment Platforms Market Study in 2019, the FCA said it would keep the role of platforms in helping consumers understand their investment costs under review. The FCA has now published a new webpage setting out its findings in this area, including examples of good and bad practice.
Amongst other things, the webpage reminds platforms to provide both existing and potential clients (in good time, before the provision of the investment business) with:
- all costs and charges – clearly explained;
- total prices/aggregated costs – expressed both as a cash amount and as a percentage – with a breakdown available; and
- illustrations showing effect of costs on returns.
The FCA has also confirmed that it will be carrying out a review of industry progress in improving the switching process.