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RSMR launches platform in bid to beat bigger players

RSMR launches platform in bid to beat bigger players

Fund research group RSMR has launched a platform that aims to compete with its fund supermarket rivals by reacting quicker to market changes.

Launched today (25 May), the RSMR platform gives advisers access to thousands of funds, as well as its set of seven model portfolios, known as ‘Rfolios’, which are currently being used by 16 advice firms.

Advisers can also choose to filter the list down to only see RSMR’s list of risk-rated products, which includes single strategy and multi-manager funds, as well as investment trusts and trackers.

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Speaking to FTAdviser, Geoff Mills, director of RSMR, said advisers had asked the company to offer a solution that helps meet requirements set out by the regulator by delivering a “consistent and repeatable” investment process.

“Advisers are acutely aware of the administration and the potential costs of administering their business; platforms facilitate that but don’t necessarily provide the answer.”

The platform, which is powered by regulated software and technology provider Hubwise, aims to be cost efficient for advisers, and is available with the risk-aligned portfolios for a combined fee of 0.25 per cent

The launch of RSMR’s platform comes as an increasing number of fund supermarkets, including Standard Life, Zurich and Aegon, introduce discretionary managed funds to their range of products.

Jeff Plowman, chairman of Hubwise, said one area advisers are “trying to steer away from” is the investment process, meaning many choose to aggregate responsibility to DFMs.

However, he also suggested the new offering means advisers do not have to share their clients with the DFM, a factor which he said was a big concern among the advisers he currently services.

With platforms now accounting for greater retail sales, there has been talk of increased scrutiny of platforms, which Mr Plowman heralded as a good thing.

“The issue here is most of the big platforms are driven by the same techonology provider,” he said, adding the RSMR can benefit from being like a “speedboat instead of a supertanker”.

“This means when things change in the market we are able to respond quickly, and we are not stalled by having too many clients on the books.”

The platform uses risk profiling and ‘know your client’ tools, as well as an email ‘campaign manager’ feature which aims to reduce the time is takes to communicate with the entire client book when recommending changes to the model portfolios.

It also has a white label option so advisers can use their own branding.

Mr Mills added this new offering is just the start of the company’s expansion of its range of services.

Simon Torry, chartered financial planner at SRC Wealth Management, said: “New additions to the market are always welcome as they stimulate competition, but we would need to undertake appropriate due diligence to ensure that the platform was robust and sustainable.