The future of ...

Financial Advisory

27 November 2018

Advisory DistributorsFinancial Advisory

The future of platforms


  1. Many firms are reviewing their platform partner.
  2. Choose a Primary platform.
  3. What is an acceptable platform charge and who should pay for it?
  4. What do platforms do and could Back Office Systems provide the same?
  5. Many platforms do not have ‘modern technology’ and therefore integrations can be poor.
  6. More quality two-way API integration capabilities

Key Challenges:

  • The recent disastrous Platform client migrations have highlighted the problem of moving from one Platform to another.
  • Platforms keeping up to date with improvements in technology.
  • Limited access to the Data held on most platforms.
  • Poor integrations with third parties.
  • Transparency

Conclusions and solutions:

  • There should be no barriers or penalties to transfer from a platform, this is seen as poor and break current rules.
  • It was accepted that there is an enormous range of platform charges, not always transparent, and most platforms need to continue to charge to try and become profitable.
  • There is some confusion around training and events being considered an inducement – it is believed that it must contain something about the product.
  • It was felt that there is a lack of joined up thinking within different areas of the Regulator
  • It was accepted that platforms provide Custody and Trading and that everything else is seen as adding little value
  • All Data held by the platforms should be made available to financial adviser firms.
  • When considering which or how many platforms to use, you should consider who would be right to be the primary platform.

Expert: Simon Farrant, FundsNetwork 

Funds Network