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FCA launches review of the execution-only market
by Elsa Buchanan on Oct 07, 2013 at 10:50
The Financial Conduct Authority (FCA) has confirmed it is in the early stages of a review of the execution-only market.
The regulator said it is approaching the market with an ‘open mind’ and isstarting to do sample assessments on firms of different sizes, with different business models and in different sectors.
Depending on its initial findings, the FCA could launch a thematic review into non-advised models-where no advice or recommendation is given - and simplified advice models, where the adviser provides a personal recommendation to assist consumers in making straightforward investment choices.
The execution-only market was not affected by the retail distribution review (RDR), but the FCA, which is headed by Martin Wheatley (pictured), said it isexamining all parts of the industry, including looking at buy lists as well as guided architecture processes.
Hargreaves Lansdown’s head of financial planning Danny Cox said a more secure and robust direct-to-consumer market is ‘vital’ to fill the advice gap left by the RDR.
Cox said Hargreaves Lansdown will support the FCA in its work, adding:
‘The FCA is recognising that with the growing numbers of new operations, early scrutiny of these should eliminate any issues before they start, so this is a good step by the regulator to protect consumers.'
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