At least in the UK we are already seeing platforms rise to the challenge of an improved product offering with the inclusion of more sophisticated products such as Sipps. Furthermore, the insistence by the regulator on no restrictions on re-registration is likely to improve the ability of financial advisers to move to the most appropriate platforms easily and quickly. Although, at present, the lack of industry standardisation on re-registration technology is likely to create some bottlenecks in the immediate to short term.
In the medium to long term, better reporting as well as improved service and support issues will also begin to grow in importance for advisers. I believe service along with functionality will be quite a big differentiator of platform choice going forward.
As the market digests current regulations, those platforms that can cater for advisers looking for a more flexible approach to a wider variety of client needs – whether it is for income drawdown needs, managing model portfolios or more complex tax wrap requirements – will become harder for advisers to ignore.
Harry Kerr is managing director of Avalon Investment Services
Key points
■ Main focus of the FCA’s policy statement on new platform remuneration and cash rebate rules is designed to ensure charges are clear and explicit.
■ Current introduction of a clean share class to accommodate the new unbundled charging models has been criticised for its cost to end users.
■ Consolidation in the adviser market and the adoption of model portfolios may herald a move away from open architecture.
