Embattled asset managers are bracing for a probe by the UK regulator into one of their key distribution channels, amid accusations that fee arrangements are “distorting” competition among platforms.

Asset managers have spent a lot of time this year defending their charging structures and batting away criticism that they fail to deliver value for money. Last month the FCA issued a damning verdict of the UK’s £7tn asset management sector via its asset management market study, a weighty document outlining a raft of measures to bolster confidence among retail investors.