Wraps and Platforms - July 2012
Efficiency is the name of the game for many IFAs. With the RDR bringing explicit charging models rather than commission, a focus on suitability and a greater emphasis on researching all investment areas before making a recommend, many advisers are streamlining their business. Anything that can help will be lapped up.
While advisers, and providers, are split as to whether platforms offer just a service or more, there is one thing for sure: they aim to aid efficiency. With this in mind, it is no surprise that they have become a big talking point in the industry.
So much so that the FSA has released a raft of papers or comments on the sector in the recent past, the most current defining how platforms will look post-RDR. In addition to a ban on cash rebates, the paper bans payments from product providers and opens up the option that this may be extended to adjacent markets.
While much of the change was expected, the market still had plenty of comment on the alterations, with camps both for and against the ban on rebates. However, the fact remains that many providers have yet to reveal their proposition post-RDR, making the selection process for IFAs all the more tricky.
With platforms set to play a more important part in IFAs lives, it’s more key than ever that the right one be selected for both adviser and client. Hopefully the survey of the market, within this special report, makes this easier.