Advisers should be wary of guided architecture and the potential fallout from a wrap collapse, according to Thames River Capital.
Speaking at conference, head of investment partners Sarah Dillon predicted some platforms will pull out of the market due to costs.
She also cautioned against the use of guided architecture, where adviser choice is steered through a limited range of funds.
She said: “If you speak to lots of providers, not all of them are very clear on what their selection process is and how they add and close funds.”
Cofunds managing director Andy Creak warned of the danger of a platform going bust in the future.
He said: “American Express took a strategic decision not to proceed and then had the decency to do an orderly close-down. You will find that providers will go wrong, then a bit further wrong and try to dig themselves out of a hole.”