FCA weighs platform exit fee ban

Follows Investment Platforms Market Study

The Financial Conduct Authority (FCA) has proposed a ban on exit fees within the platform market, following a long-running review of the market.

In the final report of the FCA's Investment Platforms Market Study, which found competition in the market was not working as well as it should for some consumers, the regulator found some investors find it difficult to switch to platforms more suited to their needs. It explained consumers can find it difficult to switch "due to the time, complexity and cost involved - driven in part by the exit charges they incur and difficulties switching between unit classes". Under the FCA's proposals, consumers would be allowed to switch platforms and remain in the same fund without having to sell...