Seven steps for better platform client outcomes

By , 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.

Help consumers who may be building large cash balances and not taking costs into account in terms of the charges they pay, interest or investment returns sacrificed
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Help consumers who may be building large cash balances and not taking costs into account in terms of the charges they pay, interest or investment returns sacrificed

In 2017, there was £16bn ($21.2bn, €18.1bn) held in cash on D2C platforms, representing 8.8% of assets under administration, according to the FCA.

The FCA said consumers should be making informed decisions about the interest, charges and potential forgone investment returns on their cash balances.

7IM head of intermediary Verona Smith said it is encouraging the FCA is again flagging concerns about consumers holding too much cash, stating investors need to be aware of the unintended consequences of being too risk off.

Its Retirement Outcomes Review, published on 28 June, also flagged the issue.

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