The implications of the FCA Platform Paper PS13/1, particularly for platforms sitting on large legacy back books, have been the subject of much discussion in the industry lately.
What strikes me though is the response of some of these platform providers to the challenges presented to them, both by the FCA paper and the HMRC tax on rebates.
Rather than facing up to the mammoth task ahead, some are grasping at straws in a last-ditch attempt to protect their back books. Advisers, paraplanners and everyone else involved in making decisions about platform selection should be wary of these sorts of responses among providers.
Due diligence should include asking serious questions about the business model and the sustainability of the platform provider, but also their willingness and ability to respond to regulations and market direction.
Even if the provider has deep pockets, it is safe to expect that dealing with their substantive legacy issues is going to take considerable time and money, and no doubt may hamper service delivery and their ability to develop their propositions further.
But with market share for the biggest platforms falling, things are about to get even worse for those providers with legacy back books. Yes, they have until 2016 to deal with these issues, but that is not long. The clock is ticking. Tick-tock. Just get on with it already.
Abraham Okusanya is principal at FinalytiQ
