The FCA says platform providers could do more to communicate with customers ahead of the ban on rebates for new business which comes into force in April.
FCA long-term savings and pensions director Nick Poyntz-Wright says the regulator is carrying out work to test platforms’ readiness for the new rules, the results of which will be published in the next few months.
Speaking at a press conference yesterday, Poyntz-Wright said: “We are talking to some of the platform providers and platform operators to test what progress they are making in getting ready for the new rules in April.
“Good progress is being made, but one area people might want to give more consideration to is communication – explaining to their customers what the changes mean.
“The other aspect which is coming to the fore is contingency planning. In the majority of cases firms have a pretty good plan but the question is, what if something goes wrong or not entirely to plan? That is where some of the challenges come from.”
Poyntz-Wright said the new rules are designed to make platform charges more transparent, and the regulator hopes they will create more competitive pressure which is passed down to consumers.
He said: “Often the competitive pressure has been higher up the value chain and we want to see the benefits of that flow down to the customer.”
A spokesman for the FCA says 10 platforms have been involved in the review.