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AIC responds to interim report of FCA’s Investment Platforms Market Study

16 July 2018

Ian Sayers, Chief Executive of the AIC, comments on the interim report.

The FCA today issued the Interim Report of its Investment Platforms Market Study, raising the concern that competition between platforms may not be working well for some groups of consumers. The FCA also believes platforms could do more to encourage competition between asset managers.

Responding to the report, Ian Sayers, Chief Executive of the Association of Investment Companies (AIC) said: “While this report raises some important issues, we hope that the FCA will not miss the opportunity to look at how platforms promote competition in a broader sense. Looking at competition between asset managers is fine, but competition between different types of investment product is also vital for a healthy market.

“Investment companies can provide better long-term performance, with the average investment company returning 165% over the past ten years, compared to 108% for the average open-ended fund*. But recent research from the lang cat has shown that platforms can form a barrier to the use of investment companies, particularly in the adviser market, where platform pricing structures can make it less cost-effective to hold listed funds.

“The FCA should ensure its further work on this topic considers whether platforms facilitate or frustrate competition between different fund types.”

The lang cat’s research on barriers to using investment companies in the platform market can be downloaded here.


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  1. * Source: Morningstar, total return over ten years to 30 June 2018.
  2. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 352 members and the industry has total assets of approximately £183 billion.
  3. The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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