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 said it will look at introducing standard terminology when it comes model portfolios. It is also looking at applying risk and performance disclosure.
AUA in in-house model portfolios has increased to £37bn in 2017 from £5bn in 2011, with similar products also being offered by wealth and asset managers, the FCA said.
The push for further standardisation mirrors the investment pathways suggested in the Retirement Outcomes Review, said EY’s Mahony.
“The concerns expressed around the variations in asset mix between similarly risk-rated model portfolios are consistent with the regulator’s push for greater consistency of investment options offered to less financially-engaged consumers.”
The remedy falls under the overarching requirement that firms are fair, clear and not misleading, said Aegon’s Cameron. “Any labelling we use as a provider, we would look at through that test.”
Tags: FCA
