Many readers will know the issues involved here but here is a brief recap.

In essence the story, in supermarket terms, is akin to a merger between Tesco and Sainsbury - it would create a mega-sized firm potentially dominating the platform sector.

FNZ-GBST merger blocked following CMA investigation

FNZ, the hugely important platform engine which runs many UK investment platforms, bought its rival GBST last November. All fine so far except the Competition and Markets Authority (the CMA) said ‘hang on a minute’ and decided to haul in the deal for a look over.

It temporarily halted the deal first and then this week, to the surprise of some, decided to block the deal until concerns about competition were resolved.

With the merged company potentially holding at 50% of the platform ‘engine’ market there was a danger that platform fees would be pushed up, new competitors would be deterred from entering the market and service to clients might decline.

It’s now up to FNZ and GBST to respond. One route for FNZ might be to sell or partially sell GBST. The CMA says other options may be available too.

So why does all this matter? For planners it’s really about the future of the crucial platform sector which most now rely on. With the vast majority of pensions and investments now run on platforms it’s about how those assets are managed in future. Nearly ever pension saver and investor in the UK could be affected, it’s that important.

Many industry experts have written about the likelihood of consolidation in the platform sector and there is no doubt running a platform is hugely expensive and platforms need scale to make money as fees drift down.

So should the FNZ-GBST merger go ahead? The short answer is that it will be up to the CMA but if it significantly damages competition in the platform sector then it’s not a good deal for UK plc. The most likely scenario is that the deal will be restructured but it’s good to see the CMA has been alert to the dangers and is acting in the best interest of consumers and planners.

Competition is a precious thing and lack of competition almost inevitably leads to consumer detriment.

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Kevin O’Donnell is editor of Financial Planning Today and a financial journalist with 30 years experience.  This topical comment on the Financial Planning news appears most weeks. Follow @FPT_Kevin