Fidelity and Abrdn are among the big names to have joined a new trade body for online financial sites as the industry faces regulatory scrutiny and a government shake-up.
The Platforms Association was incorporated at the end of last month and aims to represent a range of firms, including those selling products like tax-free Individual Savings Accounts (ISAs) directly to consumers and companies providing services to financial advisers.
Keith Phillips, who has held executive director posts at influential trade bodies TheCityUK, the British Bankers’ Association, and The Investment Association, is due to head the group.
Aegon, Abrdn, Fidelity, Quilter and Octopus-owned Seccl will be represented on the group’s board and leadership council. David Moffat, a senior director at tech firm SS&C, will chair the board.
Although most UK investment platforms are already members of other associations, the new body aims to address issues specific to the £800bn industry.
Moffat told the Financial Times that the Platforms Association was necessary partly because of regulators’ “increasing” scrutiny.
He added that “when important discussions are being led by the regulators and government on things such as financial advice, we are able to say here’s the data, here’s what customers are doing and here’s the industry view and our suggestions regarding proposals”.
The Financial Conduct Authority wrote to 42 investment platforms late last year over concerns about the amount of interest they earned on customers’ cash deposits as well as charging them a fee, known as “double dipping”.
Investment platforms used by advisers also grappled with heavy outflows of consumers’ cash last year due to economic pressures and market volatility.
Elsewhere, Labour is reportedly preparing to scrap a “British ISA” proposed by the previous Conservative government that would have allowed savers to invest an extra £5,000 tax-free in UK equities, on top of the £20,000 ISA allowance.
Some investment sites have complained that the ISA has become a confusing area of personal finance after a number of additions in recent years.
Research published by Barclays earlier this month found that Britons have some £430bn of excess savings sitting in cash deposits.