The FCA is to publish a consultation next month to address the distinction between online guidance services and regulated advice.
The Financial Times reports the regulator is looking to address concerns around the “grey area” of online investment services offering advice and those providing guidance.
Most direct-to-consumer platforms offer a degree of investment guidance, with some offering risk-profiling and recommended investment portfolios.
Speaking at a Treasury Select Committee hearing in February, FCA chief executive Martin Wheatley said the regulator wanted to make it clear to consumers what constituted online advice and what was not fully regulated advice.
In the TSC hearing, Wheatley also said he thought it was possible to offer advice without human interaction.
The regulator announced a separate review of non-advised sales and simplified advice in December.