The package – set out in the final report of its “Investment Platforms Market study” – includes proposed FCA rules and actions.
The package should make it less expensive and time-consuming for investors to shop around and move to the platform that best meets their needs.
The FCA is consulting on new rules to allow consumers to switch platforms and remain in the same fund without having to sell their investments, and is proposing to ban or cap exit fees.
The FCA will review progress made by the industry to improve the switching process later in 2019, and again in 2020, if needed. The FCA will consider taking forward further regulatory action if the efficiency of the switching process does not improve.
Since publishing its interim report, the FCA has seen companies and the industry acting to improve the provision of information about costs and charges, helping consumers shop around. As a result, the FCA is not proposing new rules but will review the progress of industry in 2020/21, and consider if further action is necessary.
The consultation runs until 14 June 2019. You can give feedback on the FCA website here.
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