Investment platforms appointed gatekeepers on value for money reports, says ii

interactive investor comments on the FCA Consumer Duty.

• The role and responsibility of investment platforms just got bigger

interactive investor, the UK’s second-largest investment platform for private investors, has long been a vocal critic where the investment industry has fallen short on offering choice, transparency and value.

Today’s Consumer Duty rules, laid out by the Financial Conduct Authority (FCA), put the concept of reasonableness and good outcomes for retail consumers front and centre, ushering in a new Magna Carta of consumer rights for the modern world.

Part of this new framework will see investment platforms turn gate keepers on value for money reports. Platforms will be required to ‘switch off’ funds which have been assessed as not representing value for money, which should focus fund management group minds on value even further. 

Richard Wilson, CEO, interactive investor, says: “At ii, we have long championed value for money and transparency. Today’s rules enshrine this spirit in regulation, potentially creating a Magna Carta for consumer rights.

“We’ve made it a point of principle to help ensure exit fees are now the industry exception, rather than the rule. So, it’s noteworthy that the FCA’s stance has softened from a once mooted outright ban, to a focus on ‘unreasonable’ exit fees, although any form of barrier to exit is wrong, in our view.

“A fundamental shift in today’s rules will see investment platforms turn gatekeepers on value for money reports. Costs look set to be in the spotlight now more than ever. The role of the investment platform just got bigger, and the best platforms will continue to relentlessly focus on delivering value for money around platform costs, service innovation, tools and impartial insights.”