He said vertically integrated firms were using their platform to promote their own model portfolio service (MPS).
Mr Davies, who is head of UK retail sales at Momentum Investment Management, said distribution was key as it was an “opportunity to ensure the client is presented with your solution”.
The Financial Conduct Authority has said it will look into one-stop-shop businesses, those which offer advice and financial products, after the industry flagged its concerns to the regulator.
In its asset management market report published in June, the FCA reported “a number” of respondents to its November 2016 consultation raised concerns about conflicts of interest at so-called vertically integrated firms.
But Mr Davies said other than “posturing”, the FCA had done nothing about vertically integrated businesses.
Dennis Hall, chief executive and chartered financial planner at Yellowtail Financial Planning, said he had not come across the problem on the platforms he had used, although he said he mainly used the Raymond James platform.
“My limited knowledge suggests there are other, newer, standalone platforms that aren’t part of a vertically integrated solution,” he said.
“My view is that MPS providers of any scale will develop their own platform offering if necessary, or white label an existing version.”
Asked whether this could lead to less choice for advisers and their clients, Mr Hall said: “As for less choice, I think clients and advisers have got more choice than they used to have, albeit even if some MPS are finding it difficult to get onto some platforms.”
Mr Davies said Momentum’s own products, which include a range of multi-asset funds, had found traction among advisers “who can see not setting client expectations will become a problem”.
He suggested there was a risk that ambulance chasers could begin to target the advice world, asking clients, “did your investment perform as expected?”.
He said IFAs who wanted to protect themselves from the potential risk of this happening to their clients had started to use outcomes-based investment products.