Regulator warns against using a single platform
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The regulator has signalled that it is unlikely to be content with advisers using just one platform.
It urges advisers not to assume a platform is suitable for all clients and hints it is likely to take a dim view of advisers that put all their clients on one platform.
The paper says: “In practice, a firm with a varied set of customers is unlikely to be able to use a single platform for all their customers. Additionally, a firm should not assume that platform services will be suitable for its customers.”
It says it is good practice for firms to segment customers into groups with similar needs and circumstances when carrying out due diligence to assess the suitability of the services provided by different platform operators.
It says this may identify groups of customers likely to be best served by different platforms.
Yellowtail Financial Planning managing director Dennis Hall says: “The regulator does not have an understanding of what small IFA businesses are trying to achieve, which is to develop a niche offering for a certain section of the market.”
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