The Financial Conduct Authority has uncovered failings in the way platforms report transactions.
A thematic review being carried out by the regulator found the platform sector to be at odds with the rest of the industry when it came to transaction reporting.
In a letter to platform providers in May, seen by Money Marketing, the FCA said a “substantial” number of platforms did not report transactions and says it now requires platforms to amend any previous errors.
The regulator is asking platforms to complete a review of transaction reporting compliance and provide confirmation of completion by 1 August.
Firms who think they are currently compliant are required to confirm this via a form attached to the sent letter.
The letter says: “The initial findings of the thematic review indicate a disparity in compliance between the platform sector and the rest of the industry in respect to transaction reporting.
”A substantial proportion of the entities studied in our preliminary review did not transaction report despite entering into transactions in reportable instruments.”