firms: After an interim report published in July, the regulator gave firms until early 2019 to make it easier for customers to transfer their investments to another company, according to The Guardian. The watchdog said on Thursday that because firms had failed to do so, it planned to introduce a ban or cap on exit fees as well as new rules to allow consumers to switch platforms and remain in the same fund without having to sell their investments. The Financial Conduct Authority has been looking into investment platforms that offer a range of funds online and found that 7% of all consumers wanted to switch but were put off from doing so, with many citing exit fees as a significant hurdle. It is consulting on these measures until 14 June and will announce any steps some time after that. As part of that, we believe it is right that we restrict exit fees, so people can move their money freely. Christopher Woolard, the executive director of strategy and competition at the FCA, said While the market is working well for most of its consumers, the package we've announced today should make it less expensive and time-consuming for investors to shop around and move to the platform that best meets their needs.
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