FCA May Impose Exit Fee Ban on Retail Investment Platforms

Amidst a wave of Brexit angst, the Financial Conduct Authority quietly launched a report on Thursday detailing developments within the UK’s retail funding market.

More particularly, the British regulator was trying on the issues retail traders face when utilizing funding platforms.

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The marketplace for such platforms within the UK has grown exponentially within the final decade.

According to the FCA, funding platforms had roughly $250 billion belongings below administration in 2013. Today that quantity is considered in extra of $500 billion.

Similarly, the variety of retail funding accounts within the UK grew by 2.2 million between 2013 to 2017.

In its new report, the FCA stated that, although revenue is just not “excessively excessive” for customers, the market is working nicely.

For higher or worse, it isn’t completely clear what the FCA thinks, the regulator additionally stated that individuals who pay extra are likely to get extra non-price options and are extra glad with the merchandise they’ve.

Easy swap

If there may be going to be regulatory intervention by the FCA, will probably be in trying to assist customers transfer between totally different funding platforms.

For instance, the regulator stated that it ought to be potential to maneuver funds from one platform to a different, with out first changing these funds into money.

The FCA additionally stated that it could contemplate placing a cap on exit charges, or probably banning them altogether, in an effort to make sure that customers can swap to a different supplier extra simply.

“We will assessment the trade’s progress in making the switching course of extra environment friendly and serving to customers entry comparable charging info,” stated the regulator in its report. “If progress is just not made then we are going to contemplate additional intervention.”

Most of the foremost platforms are operated by main banks and asset managers. Barclays, HSBC and Fidelity, as an example, present a number of the hottest platforms to retail traders within the UK.


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David is the founder of The firm originates business financing for companies of all size in the Canadian marketplace . Originations include business loans, term loans, asset based lines of credit, SR ED Tax credit financing , and receivable financing .

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