"Let's say I would expect the bad debt to be 3 per cent, we would hold 4 per cent in the Provision Fund."
The FCA has made it clear, however, that it is not happy with the way platforms represent the risks that investors are taking on. As a result, in July it issued a paper outlining changes it wanted to see among platforms, including making the risks clearer to investors.
Article continues after advert
Regulation and risk is the subject of the next feature.
melanie.tringham@ft.com
Page 3 of 3
