As platforms come under closer scrutiny, performing due diligence on platforms is becoming ever more important. Make sure you cover all bases with Money Management’s guide.
1. Beware of shoehorning. The regulator is keeping a watchful eye on how and why advisers make a selection of any kind. Make sure the platform you choose is right for the client, not just more convenient for you.
2. Segment your clients. What your clients need should always be your first focus. Do they need a simple service, or something more bespoke? Separating your clients can help in the process of choosing the right platform.
3. Consider total cost of ownership. This idea is making headway as a way of comparing the total cost of holding a particular investment in a particular place, rather than just looking at fees in isolation. In a post-RDR cost-focused world, this is even more important to prove good value to the client.
4. Check that the platform has all the elements you need. Ranging from basic platform requirements to complex reporting functions, every element can make a difference to your total proposition. For example, if a platform doesn’t have a reporting function, consider the extra time you will spend in creating those reports yourself.
5. Keep an eye on how platforms are changing. As detailed in the latest wraps and platforms survey, platforms will have to adhere to new requirements on charging from April 2014. Some are making swift progress on making the change, while others are taking a little longer. Make sure you understand what is happening and when so you’re comfortable in your clients being on the right platform.
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