“Platforms with restricted asset ranges may only be suitable for restricted advice,” says Terry Huddart, technical communications manager at Nucleus.
However, he points out that the key thing is that chosen platforms can support the requirements of a firm’s chosen investment, advice and service offering.
“It’s about good principles, common sense and need alignment. The primary consideration has always been suitability and continues to be so.”
Mark Polson, principal of platform consultancy The Lang Cat adds that the pros and cons are exactly the same for restricted and independent advisers.
“No platform can deal with every possible client situation, so whether you’re independent or restricted you’ll need to be ready to go off-platform,” he says.
“That is, unless you’re so restricted that you refuse to serve anyone with needs beyond what your chosen platform can do. But that doesn’t sound like a recipe for success.”
Shaun Sandiford, business development director of Axa Wealth, argues that for many advisers it depends on the range of funds offered by the platform. This may apply equally for the client, he says.
“It entirely depends on what the client is looking for. For many advisers, platforms offers a time efficient and easy way to access investments on behalf of their clients, but they tend to be of most value for those clients with larger portfolios.”
Also, for clients, platforms appear more expensive than insured business, Mr Polson adds. “They’re not, because most costs insured investors bear don’t show up in a quote, but you try telling the compliance department that.”
“Platforms can also be a bit clunky and can spit out a lot of information that the client could care less about. On the upside, they’re flexible, transparent, and empower advisers to spend less time mucking around and more time advising.”
Terry Huddart, technical communications manager at Nucleus, agrees than convenience is a key issue for clients.
“Instead of having to keep tabs on different investments in different places, with different statements coming in at different times, a wrap holds all client investments in one place.
“Investment choice, transparency and value for money are all benefits for the client.”
