The future of platforms
Headlines:
- Many firms are reviewing their platform partner.
- Choose a Primary platform.
- What is an acceptable platform charge and who should pay for it?
- What do platforms do and could Back Office Systems provide the same?
- Many platforms do not have ‘modern technology’ and therefore integrations can be poor.
- 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
