Parliamentary Search

Written question asked by Baroness Altmann (Non-affiliated) on Wednesday, 29 January 2025, in the House of Lords. It was due for an answer on Wednesday, 12 February 2025. It was answered by Lord Livermore (Labour) on Tuesday, 11 February 2025 on behalf of the Treasury.

Financial Services: Software

Question

To ask His Majesty's Government what assessment they have made of whether the Financial Conduct Authority and other regulators have sufficient powers to intervene when retail investment platforms fail to inform their customers clearly, fully and in a timely manner (1) about the direct charges they pay for the investments they purchase on the platforms, (2) that they can exercise their rights to vote at the meetings of companies in which they hold shares, and (3) about the reasons for de-platforming listed, regulated investments that they may wish to purchase.

Answer

The Government wants to see more consumers benefit from the long-term financial security and returns that investing can provide and recognises that platforms will be crucial to achieving this objective.

Retail investment platforms are regulated by the Financial Conduct Authority (FCA), which has the necessary powers to intervene should they find retail investment platforms to be in breach of their regulatory obligations.

The Government legislated to enable the FCA to reform the UK’s retail disclosure regime to ensure consumers have access to the most useful information – including on risks, costs and performance – to support their investment decisions. The FCA consultation is currently open for views.

The issue of shareholder rights, including where shares are held by an intermediary, is being considered by the Digitisation Taskforce. The government is fully committed to ensuring the UK’s shareholding framework is fit for purpose and looks forward to receiving the taskforce’s final report.

Secondary information

Type
Written question
Reference
HL4526
Session
2024-26
Subjects
Software Financial services
Link
View this Written question on www.parliament.uk