Forty per cent of adviser firms are embracing a single platform rather than multiple wraps and fund supermarkets, says CWC Research.
The study, conducted with BNP Paribas, reveals that 80 per cent of advisers see platforms as core to their future strategy.
Senior partner Clive Waller claims the move to a one-platform model represents a huge opportunity for adviser firms.
He says: “We are seeing a number of single-provider deals among significant IFAs.”
Waller says it is cheaper to run a business around one system and set of processes. He says: “Can you imagine a car dealer selling Toyotas, Fords and Land Rovers? The staff would have to know so much more, cope with different processes and deal with different offices.”
The study says the migra-tion to platforms and apparent threats from the retail distribution review, prin-ciple-based regulation and proposed changes to capital gains tax will have a huge impact on asset managers, life companies and distributors.
Waller says: “These changes are driving the migration to a platform-based model even faster, as this is the easiest way to improve the overall client proposition while reducing administration costs and introducing appropriate compliance checks and audits.”
He says no-brand or own-brand platforms are favoured over provider platforms. Waller says advisers “quite reasonably” do not know how to carry out due diligence on platforms.
The research involved face-to-face interviews with 100 individuals at 75 firms.