Some platforms will struggle with the increased demand next April, specifically for drawdown, according to Fundsnetwork’s head of advisory services Jon Everill.
He told FTAdviser that to support clients with the changes, the platform industry will develop a real focus on the decumulation market in 2015.
“New propositions and services that support clients at and in retirement - specifically the management of income in retirement - will start to develop quickly from next year onwards.
“Another boon for platforms will come from the inability of some life companies to support pension freedoms; this will undoubtedly drive further asset flows during 2015 and beyond.”
Mr Everill predicted that providers which focus on service, the underlying needs of advisers and their customers, will win over those simply focusing on new products and price.
“In the asset management space, we expect to see further downward pressure on fund prices, driven by the continuing rise in popularity of passive, as well as more general consumer and regulatory pressures.
“We also expect to see further consolidation of assets in a smaller group of top performing funds/groups, resulting in further pressure on the rest of the market.”
The rise in discretionary fund management over model portfolios is a trend Mr Everill expects to continue next year, although price pressure is likely to play a significant role in the selection and use of DFMs as popularity grows.
A little further down the road, Mr Everill predicted the first UK platform with £100bn of assets within the next 5-10 years, although he was modest enough not to suggest it would be Fundsnetwork.
peter.walker@ft.com
