Santander has said it is considering plans to launch an investment platform in 2015 aimed at customers ranging from high net worth to traditional retail, Adrian Russell, a Santander spokesman, has said.
He said: “Santander recognises that the platform market is growing, and we are exploring various options to enter this market in order to deliver services ranging from simple, non-advised platforms, where investors make their own decisions about what to buy, through to full advice and discretionary services.”
He said that it was still early in the planning process, but Santander does believe the best way to provide these important services to its customers was through a strategic alliance with a third party.
It came as Prudential launched its new platform-based bond proposition on the Ascentric wrap platform.
Michael Leahy, managing director of Prudential International Assurance and Platforms, said the deal with Ascentric would help extend the reach of its Onshore Portfolio Bond to platforms, advisers and clients.
He said: “In developing the Prudential Onshore Portfolio Bond, our aim was to address the gap in the current platform market. Bonds are a core part of holistic financial planning, and it is our belief that platforms without a bond solution must come with a ‘mind the gap’ warning to clients.”
Mark Polson from Edinburgh-based platform specialist consultancy, the Lang Cat, said: “Everybody wants into the platform party. But those turning up late are bringing different bottles than the others, probably one of those sticky brightly-coloured ones you get on holiday to make cocktails when you get home but never do.
“Although Prudential is using platform technology as an underpin, its thrust is to provide retail products which will play nicely with other platforms. That seems smart to me a way of participating in the market without being ‘me too’. And if things go well or the market changes, there is a much shorter development journey.
“Santander will participate in the growing direct platform market. While there are lots of direct platforms already, most aim at the motivated or hobbyist investor; relatively few are really pushing at those not naturally inclined to invest. If Santander can activate its base, it could do well.
“We won’t have seen the last platform to come in to the market; it will get bigger before it gets smaller.”
Adviser View
Phillip Masters, director of London-based Phillip Masters Financial Advisers, said: “They have missed the boat, what will happen is that the platform will not make a profit and will have to close. This is what happened with other providers, who were in and out. It makes advisers, who have recommended a platform to their client, look foolish. They then must do all the work to bring the client over to another proposition.”
