PlatformsAug 3 2015

Research firm releases free platform due diligence service

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Research firm releases free platform due diligence service

Finance & Technology Research Centre has launched a free platform due diligence service, aimed at helping advisers manage their responsibilities and streamline processes to stay in line with regulatory expectations.

The service already includes data on product coverage, financial planning tools, online functionality and adviser software system integration, including the depth of integration.

Aegon Retirement Choices, AJ Bell, Aviva Wrap, James Hay, Novia, Praemium, Standard Life Wrap, True Potential and Zurich Wrap are already represented in the service, with a further four platforms in the process of adding their information.

Users can filter the data to produce detailed analysis of the key issues they wish to compare and generate written summaries and templates.

Alongside the comparative data, the new service will also provide a library of educational content to help advisers understand some of the softer issues around due diligence and how they can be explained.

Ian McKenna, managing director of F&TRC, explained that although the Financial Conduct Authority has deferred the completion of its thematic review, it is clear that due diligence is seen as a crucial issue for advisers to address.

“Whilst due diligence is not about just data, there is a need for advisers to collate considerable amounts of information. With adviser firms conducting such activity independently, there is huge duplication in time effort and cost for both advisers and platforms.”

He added that by creating a structured central question set, platforms can focus on getting the central data 100 per cent right, rather than responding to the same enquiries again and again.

Emma Napier, True Potential’s head of distribution, commented that for some time advisers have been torn between collecting the right amount of due diligence information and turning that into something succinct, meaningful and worthy of FCA scrutiny if ever required.

“Every adviser firm is different with different platform ‘must-haves’. It has been difficult in the past trawling through heaps of disparate provider documents and evidencing a process which supports the firms’ client proposition.”

There is no charge to platforms or life offices for including their information and the service is accessible free of charge to advisers.

peter.walker@ft.com