For those more wealthy clients, or those desiring a wider choice of investments, the open architecture wrap providers may be more suitable. It may also be the case that for the wealthier clients who demand and expect a high level of service, the smaller more personalised service providers will be the most appropriate.
For some of the smaller players in the market, the FCA’s push for a multi platform approach could lead to an increase in business, or at least interest, from the adviser community as some advisory firms start to consider alternatives.
But I think in many ways we can get too concerned about the impact of RDR, pressure for a multi-platform approach and indeed the treatment of rebates on platforms. There will always be something new going on in the market and changes within our industry. As the platform industry continues to mature, I am sure there will still be a few new entrants, perhaps from overseas.
Among the platforms currently in the market I think there will be some consolidation but not necessarily the big players buying up the smaller ones. It is the larger players with high overheads whose owners at some stage expect a return for their investment. Consolidation where there can be savings, be it another large platform or financial institution, has to be an option.
Harry Kerr is director of Avalon Investment Services
There has been a growing interest in platforms amid their ability to offer consistency, efficiency and a wide range of investments.
Some platforms are best if you have very few transactions, while others may have a slightly more expensive administration charge but no transaction charges
The long term effect should be to increase business for some of the wrap providers as the larger supermarkets continue to be volume players,
