The latest study will be undertaken to evaluate the function of competition in the sector, and its review revealed that limited clarity over price and quality of services may make it difficult for clients to assess whether they are getting value for money.
The review also found that new entrants or smaller established firms will find it difficult to challenge established large players in the market due to the bundling and cross selling of services.
Through a combination of round-tables and one-to-one meetings, FCA met with around 70 organizations and individuals during the wholesale sector review and received 40 written responses.
FCA director of strategy and competition Christopher Woolard said: "The UK is a global hub for investment banking, and this sector plays a crucial role in our economy, helping companies raise capital for investment, expansion and funding ongoing operations.
"What was clear from the discussions we had with stakeholders and firms was that there are unanswered questions about potential conflicts of interest and value for money in this market."
Expected to be published in spring 2015, the terms of reference for the study will be informed by views from industry, trade bodies and clients, FCA said.
Later in 2015, the watchdog plans to conduct a market study into asset management as well as related services.
Forthcoming regulations are expected to affect the way competition works in terms of other potential competition issues that have been identified.
Image: FCA will study competition in investment and corporate banking. Photo: courtesy of Vichaya Kiatying-Angsulee/ FreeDigitalPhotos.net
