Bringing you live news and features since 2006 

Man with binnoculars

UK advisers look to platforms for support in post-RDR world

RELATED TOPICS​

With the Retail Distribution Review (RDR) due to be implemented in January 2013, over a third of advisers (34 per cent) say they are contemplating changing their main platform in the next 12 months, according to Aviva.



Of those advisers who say they are definitely changing platform, cost and investment scope are the most cited reasons for making the switch. In fact, choice of funds under management is the second most influential factor for selecting a platform, mentioned by about half of respondents.

However, although cost may be the main reason that some advisers are switching platforms, it does not come high on the list of reasons for initially selecting a platform, with just seven per cent referring to cost in their selection process.

The top factors influencing the selection of a platform are: functionality of online services (70 per cent), followed by choice of funds under management (49 per cent), research capabilities (42 per cent), compliance and risk management support (39 per cent) and integration with back office systems (36 per cent).

The Barometer found that larger firms are more likely than smaller firms to consider switching their main platform in the next 12 months. Eleven per cent of respondents from firms with more than 25 advisers will definitely change their platform and another 26 per cent are considering it compared to just three per cent of sole traders who say they are definitely switching and another 28 per cent considering it.

There is also difference in the reasons behind platform selection. Sole traders place greater emphasis on research capabilities, compliance and risk management support and the brand of the platform. Respondents from large firms point to functionality of online services and integration with back office systems.

Andy Beswick, intermediary director at Aviva, says: “A lot of advisers have already looked at, and refined, their business models and client propositions in light of RDR, so it isn’t surprising that a large number of them are considering new platforms based on a new set of requirements and expectations from their clients.

“Advisers know what they need from platforms and have their own individual priorities. What’s important is that platform providers understand that these needs and priorities are not universal. Advisers from different sized firms have different expectations, which must be met if they are to stay with a platform.

“It’s unlikely a single platform will meet the needs for all clients or all advisers, providers will therefore need to be clear about what they stand for and back this up with appropriate propositions."

Latest News

MerQube has announced the appointment of Dave Mueller as Chief Financial Officer. Mueller brings 17 years experience operating in corporate..
Northern Trust Asset Management (NTAM), has announced that David Abner is joining as Head of Global ETFs and Funds...
Nvidia’s market cap surge to more than USD3 trillion making it the second most valuable company in the world almost..
BlackRock writes that May marked the highest inflow month of the year for both rates and high yield (HY) ETPs,..

Related Articles

Darren Johnson, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by