Treasury has recently announced that fractional share contracts should be eligible as ISA investments – which will mean a change to the longstanding HMRC position. FCA has taken the opportunity to remind firms that are offering fractional shares to consumers that the Consumer Duty applies, and that they must consider whether their offerings are in fact delivering good outcomes for consumers. It gives examples of characteristics of fractional share models that may impact consumer outcomes, including limits on transferability or tradeability, fees and charges, and consumer understanding of their dividend, voting and ownership rights.
