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 does not currently consider further cost and charges disclosure necessary.
However, it will assess whether firms are using Mifid II requirements as an opportunity to innovate on providing cost and charges information for customers. In particular, it noted the required single charge ex-ante in pounds and pence should simplify complexity for consumers.
It will also explore the role of third-party intermediaries, such as price comparison websites, in helping consumers shop around.
Aegon pensions director Steve Cameron told our sister publication Portfolio Adviser he was pleased the FCA was not planning to introduce additional requirements for disclosure.
“Sometimes less is more. Absolutely charges should be transparent, but if you present clients with a huge amount of charges information that can be a turnoff rather than a way of encouraging engagement. It should be about more effective rather than more disclosure.”