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 is considering whether switching costs can be reduced through banning exit fees and is looking at the practical, policy and legal implications of such an approach.
It will also look at improving switching between share classes and clarifying expectations around charging for the adviser’s role in switching.
It wants to reinforce the the Transfers and Re-registration Industry Group (Trig) industry initiative, introduced in February 2016, to establish best practice on switching, including through platforms.
7IM’s Smith was supportive of easing the process of switching platforms.
“At a time when it has become so much easier for consumers to switch bank account, the platform industry has moved forward over the years, but we are still not there yet.
“It’s time these barriers were removed. The industry needs to remember that it is a privilege, not a right to look after client money.”
Tags: FCA
