PlatformApr 17 2018

Lang Cat enters due diligence market with network deal

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Lang Cat enters due diligence market with network deal

Consultancy firm The Lang Cat has started offering due diligence services to advice firms, as it signs a deal with whole of market network Sense.

The Edinburgh firm has been commissioned to provide platform due diligence support to Sense members.

This is the first time The Lang Cat has provided this service to a financial advice business on a tailored basis - as opposed to its quarterly platform reports which it sells to firms.

As part of the deal The Lang Cat will produce a bespoke edition of its quarterly platform market scorecard, including pricing analysis of special terms Sense members may have with any chosen platform provider.

Platforms have dramatically cut the time it takes advisers to process and manage client investments, with most now relying heavily on the online systems.

But they have faced heavy criticism over problems related to technology updates that have often left advisers shut out of client information for long periods.

Earlier this year Aviva faced issues with its platform after it was offline for more days than originally planned in mid-January for upgrade work to allow the platform to move to FNZ Technology Service.

The platform caused problems for advisers into March as several services were not available, including client reporting. Drawdown income and adviser charges were not paid in some instances.

Mark Polson, principal at The Lang Cat said: "As vertical integration and restricted advice propositions have grown in popularity, it’s clear that platforms fundamentally shape the services advisers offer.

"As a result, rigorous platform selection is more crucial than ever. Sadly, it’s still far too time-consuming for advisers to really get to grips with what each platform’s advantages and drawbacks are. Most can only be experienced; not described unless you have the time to really dig in.

"We know it’s difficult for advisers to undertake and evidence strategic platform selection. Yet with the Platform Market Review set to report in the summer, you can be sure there is going to be even more to think about."    

Specially created heatmaps will show how much Sense members’ clients will pay across a range of platform pricing points and The Lang Cat will also provide analysis of functionality and latest market developments and run a series of webinars for members.

Catherine Mellor, head of development at Sense, said: "Platforms continue to play an integral role in the provision of investment and pensions advice to clients yet choosing which platform to invest clients’ money through remains challenging.

"Regular price alterations, well-publicised technology difficulties, and likely changes to some platforms’ ownership make it more important than ever to keep knowledge of the market up to date and to make the right decisions for clients.

"We are delighted to improve the support we provide to our members by partnering with the lang cat to provide our members access to its up to date intelligence. We have already had very positive feedback from advisory firms on the quality and value of the Lang Cat documents."

 

damian.fantato@ft.com