UK watchdog sets out terms for retail funds sector probe

LONDON, July 17 (Reuters) - Britain's markets watchdog set out on Monday the scope of a study into whether the country's 500 billion pound ($654.20 billion) online funds "supermarkets" sector offers retail investors the best deals.

The Financial Conduct Authority (FCA) said it will look at how platforms compete in practice and whether they use their bargaining power to get investors a good deal.

"Platforms have the potential to generate significant benefits for consumers and we want to ensure consumers are receiving these benefits in practice," Christopher Woolard, FCA executive director for strategy and competition, said in a statement.

The study is part of the regulator's wider work looking at whether investors get value for money.

The FCA aims to publish an interim report by summer 2018 which will set out preliminary conclusions and any potential "remedies" or actions to address concerns.

($1 = 0.7643 pounds) (Reporting by Huw Jones. Editing by Clara Denina)