Aegon has warned a market downturn next year could threaten adviser remuneration and platform charges.
In a recent FTAdviser Talking Point Poll two thirds of advisers claimed they were confident about investment prospects in 2020, but some warned UK equities might be one of the assets most under pressure following Brexit.
Ronnie Taylor, chief distribution officer at Aegon, said whilst 2019 will be remembered as a challenging year which took its toll on investor confidence, greater market volatility in 2020 could have repercussions for advisers.
Mr Taylor said: "Looking forward to 2020, many believe that we’re moving into a time of greater market volatility. While markets have been positive in recent years, we need to be ready for a downturn.
"This will not only impact on customers but will reduce fund-based adviser remuneration and platform charges."
He added in such a scenario advisers will also want to know that platform providers have the financial strength to keep investing in their business.
While "bells and whistles" on platforms can be appealing to users, Mr Taylor said he consistently hears advisers point to the basic fundamental operations as the critical element of running a platform.
He added: "From Aegon’s perspective there’s a real focus on making things better for the advisers being brilliant at the basics and being easy to do business with is what advisers crave from any platform.
"Across our industry, one of the key fundamentals of success is the ability to keep investing in technological advances as well as meeting the costs and complexities of responding to regulatory change.
"Technology is such a fundamental part of platforms and this is particularly important here."
Earlier this year Adrian Grace, chief executive at Aegon UK, backed a consolidation of the platform market, warning it was not sustainable to have 30 platforms operating in the same space.
Instead Mr Grace suggested five big platforms should dominate the market alongside a few boutique options - a scale he said would allow businesses to invest enough revenue to "keep up with the pace" of enhancements advisers want. He put that figure to at least £20m a year.
rachel.mortimer@ft.com
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