Six takeaways from the FCA platforms market study
By Jessica Tasman-Jones, 14 Mar 19
Regulator looks to improve ease of transfers while policing of orphaned clients gets dropped
Five advised platforms charge exit fees on either Sipps, Isas or stock transfers, according to the Lang Cat.
AJ Bell chief executive Andy Bell released an update to the market stating a ban on the charges wouldn’t have a material impact on the business, noting they were a net receiver of transfers so it could work in the favour.
Nevertheless, Bell said: “Platform exit fees are generally intended to cover the reasonable costs involved in switching customers to a different platform. Exit fees in other parts of the market look to recoup acquisition expenses and are far more punitive than platform exit fees and hence more of a barrier to switching products.”