65% of advisers will do extra due diligence for platforms

According to a poll of advisers by Skandia, two-thirds say they are carrying out further platform due diligence following the FCA’s paper PS13/1.

Of those, 44 per cent say this work is already well under way. Only 13 per cent of advisers ruled out further due diligence work this year.

Some 43 per cent of advisers identified charges as the most important area to consider when conducting platform due diligence.

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Areas deemed to be of less critical importance to advisers included the range of funds at 7 per cent, the range of asset classes at 4 per cent, accessibility at 1 per cent, and additional tools – also 1 per cent.

Michael Barrett, platform marketing manager for Skandia, said the FCA platform paper had raised the bar with regard to advisers’ due diligence obligations.

He added: “There is now an increased onus on advisers to assess platform capabilities as a result of the recent platform paper.

“Despite the requirements of PS13/1 not coming into play until next year, it is already clear that advisers are including this now in any due diligence assessments being made.”