FCA publishes Multi-firm Review on trading apps and Occasional Paper 66 on influence of certain app features on consumer behaviour

Article summary

The Financial Conduct Authority (FCA) has published its ‘Multi-firm Review of trading apps: high-level observations’ to assist new firms and traditional investment brokers in understanding their obligations. The review assessed 12 trading app firms, identifying positive practices and areas needing improvement in business models, revenue drivers, digital engagement practices, and appropriateness testing. Additionally, the FCA published Occasional Paper 66, which examines how app features influence consumer behaviour, finding that apps with more digital engagement practices attract younger, lower-income users who trade more frequently and often experience poorer investment returns. The FCA urges firms to consider these findings to enhance consumer protection practices.