'Noose is tightening' for overpriced platform propositions

Platform providers who are overcharging for propositions are finding the "the noose is tightening" around them, according to a new pricing guide.

The lang cat's latest Guide to Platform Pricing argues that, while the industry has generally shown a greater disposition towards making propositions cheaper over the past year, there is still scope for further reductions. The Guide said the Financial Conduct Authority's (FCA) platform paper (PS13/1) will press a number of providers to re-evaluate their charging structure. "PS13/1 - to which we shall return in depth - brings this issue front and centre. Its effective removal of the bundled charging model (albeit on a timeline to 2016) will stop cross-subsidy from old to new book and f...