Networks and distribution firms are likely to follow in Sesame Bankhall Group’s footsteps in developing their own platforms, according to Ascentric.
Money Marketing revealed last week that Sesame Bankhall is developing a platform to be launched this year in partnership with another company.
Ascentric managing director Hugo Thorman says Sesame Bankhall’s move is likely to prompt other distributors to develop offerings. He says: “Distributors will look to adopt their own platforms so they can name their own pricing structures and put their own stamp on what they offer to advisers.”
The move comes after Intrinsic Financial Services announced it was using Investment Funds Direct, the provider behind Ascentric, to power its own white-labelled platform.
But Novia chief executive Bill Vasilieff says: “I am surprised Sesame has taken this route. Advisers will want to make up their own minds as to what platform they use. I cannot see how Sesame can build its own platform and force them to use it. It is going into tied territory.”
But Thorman, who confirmed Ascentric is not working with Sesame Bankhall on its platform, says: “If all the charges are explicit and unbundled, it does not matter that a platform is being recommended by a distributor.”