The FSA says some advisers do not take platform pricing and pricing changes into account sufficiently when assessing the market.
Speaking at The Platforum annual conference in London last week, FSA technical specialist Rory Percival reinforced the FSA’s stance on the importance of assessing price.
Percival said: “There are some advisers out there who do not pay enough attention to the price of the platform. I also think the FSA is wary of advisers whose clients are paying to use a platform with lots of bells and whistles but these tools are not suitable for the client.
“In that case they could be paying too much for a platform because they are not using the services provided and they are included in the price.”
Also at the conference, Ascentric managing director Hugo Thorman said pricing will not fall as far as some have suggested.
Thorman said: “If the average price at the moment is around 35bps, that could come down to around 25bps but it is unlikely to reduce any further.”
Transact managing director Ian Taylor said: “The price of a platform is not straightforward, it depends on what you do, how much you trade and a variety of other factors. I do not think you can look at a top level figure and say accurately that is what the platform will cost.”