FCA to probe online investment market
Britain's financial watchdog is to investigate the growing online investment market amid competition concerns in the sector. The Financial Conduct Authority (FCA) will look at investment platforms used by consumers and financial advisers to assess whether competition between them is working in the interest of consumers.
The regulator pointed out that the platform market has grown rapidly over the last eight years, with assets under administration (AUA) for both adviser and direct platforms increasing from £108bn in 2008 to £500bn in 2016.
As part of its probe, the FCA will explore whether platforms help investors make good investment decisions, if they offer value for money and ascertain whether the relationships between various platforms work in the interests of investors.
Christopher Woolard, executive director of strategy and competition at the FCA, said it wanted to assess whether competition between platforms was working for consumers.