Seven steps for better platform client outcomes
By Jessica Tasman-Jones, 16 Jul 18
From banning exit charges to drawing on the platform industry to tackle orphan clients, the Financial Conduct Authority has outlined seven remedies to improve consumer outcomes.
The FCA will assess the positive and negative impact of commercial arrangements when it comes to fund pricing agreed between asset managers and platforms.
Large platforms, such as Hargreaves Lansdown, Old Mutual Wealth and Aviva, typically use their scale to negotiate discounts, which can have unintended consequences for competition in the industry.
However, while the FCA focuses on scale, Aegon’s Cameron said the report fails to recognise that “open” platforms also have less negotiating power.
“There are two different types of platform,” Cameron told PA. “There are some types of platforms that give open access to any fund you can think of and don’t in any way try to influence where the adviser or client intends to invest.
“Then there are other platforms that have best buy lists or promote certain funds or offer a much more limited range. In the former, it’s less likely the fund manager will offer better terms.”
Tags: FCA
