Not content with a sweeping review of the UK's asset management sector, the Financial Conduct Authority is embarking on a similarly thoroughgoing review of investment platforms.

As a first step in this direction, it has published its terms of reference for the Investment Platforms Market Study, setting out topics that it wants to cover. Comprehensive changes to FCA rules may or may not be the result.

HNW consumers and financial advisors have been using investment platforms more and more in recent years to access retail investment products and to manage investments. The platform market's assets under administration (AUA) for both advisor and direct platforms has increased from £108 billion in 2008 to £592 billion in 2016.

Many platforms help investors make decisions and some also offer their own investment products. As part of the study, the FCA will try to find out whether platforms help them make good choices and whether their "investment solutions" represent good value for money.

In principle, platforms allow retail investors to pool their money and achieve better investment returns. The FCA will look at whether platforms are competing with one another to an acceptable degree and whether they use their bargaining power to stike good bargains on behalf of their customers.

To provide investors with access to retail investment products and information about those products, platforms interact with one another and with advisors, asset managers and fund ratings providers. The FCA will look at whether these relationships work in the interests of investors. For the purposes of the study the FCA defines ‘platforms’ broadly. Comments must be in by 8th September.