Skandia guide to compare platforms

26 November 2009 | By Tracey Scott

The guide provides a table of due diligence questions which advisers can use to question prospective platforms. It allows the adviser to compare each platform’s responses to the questions side by side. Questions include: How well financed is your platform? Do you own your own platform technology? What is the parent company’s credit rating?

Skandia says the questions have been designed in line with the FSA’s platform factsheet.

Chief development officer Peter Mann says: “The platform market is growing rapidly and it is inevitable that not all platforms will survive.

“This will present a big problem for advisers if they have client assets on a defunct platform. Within this context, it is becomingly increasingly important for advisers to ensure they have carried out thorough due diligence before using a platform and to be able to demonstrate that they have done so.”

Transact head of marketing Malcolm Murray says the wrap is about to bring out its own online due diligence tool. But he adds: “Our job is not to compare platforms. We are simply saying that if you are looking at Transact and you have a client in mind, why not judge whether it is suitable for that particular client against the criteria laid down by the FSA in its suitability paper? It is not intended to compare platforms directly.”

Thomas and Thomas managing director Darren Lloyd Thomas says: “This is an excellent tool to have and it is very pleasing to see.”

 

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