Smaller firms unlikely to benefit from platform fee flexibility

He added the Retail Distribution Review had been a "catalyst" for a lot of change in the financial advice market, adding: "The next phase in that evolution is we are beginning to see charging models beginning to evolve."

Bill Vasilieff, chief executive of Novia, said: "Ultimately the cost has to be passed on to the client because it is their money which is paying for the adviser fee and ours.

"Scrapping platform charges is only a part of the story. It would be good to see the second part of the story, which is what happens to the adviser fees."

One of the issues the FCA uncovered during its platform market study was that charges could be opaque and complex.

It found that adviser platforms fell into two groups: about half had a relatively small number of fees - between one and seven - whereas the other half had between 15 and 35 fees.

Jeremy Mugridge, Quilter’s UK platform proposition head, commented: "The platform market study is a prompt for platforms to do more to help advisers articulate the value of the platform and it’s something we will be looking at closely.

He added: "We need to be mindful of the importance of maintaining transparency of charges in this debate.

"The RDR separated the cost of advice, platform and investments, and any model that removes these charges needs to clearly prove that other charges will remain stable over the longer term."