Platforms, advisers split over self-directed investment

Platform providers are split on whether to allow advised clients to execute investment trades themselves, according to new Money Management research.

The latest wraps and platforms survey shows a divide between platforms allowing investors to self-direct and those only facilitating read-only access for advised clients.

A total of eight providers allow execution access for advised clients: Ascentric, Cofunds, Fidelity FundsNetwork, James Hay Wrap, Raymond James, Skandia, Transact and Vantage.

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However, 11 other platforms will just facilitate read-only access for advised clients.

The issue has split advisers as well as platform operators. According to research from Cofunds, 53 per cent of advisers say they will not consider using a direct-access model for their clients. However, the firm went on to say advisers should consider using platforms to access wealthy clients of the future.

“Rather than running the risk of losing business by embracing self-directed, they will be helping to build long-term value in their firm by cost-effectively tending to the clients of the future,” said Andy Coleman, director of distribution at Cofunds.

But for Terry Huddart, technical communications manager at Nucleus, advisers may opt for a read-only model to retain control over the investment management.

“It is deliberate because advisers tend to want to have control over that sort of thing,” he said.