Thinc Destini director of wealth management Patrick Murphy has questioned the importance of the independent tag, saying he would not have a problem being tied to a single wrap platform.
Speaking at Morningstar’s Investment Conference last month, Murphy said being a wealth manager is a pure financial planning role where clients are advised on their goals and finding the appropriate asset allocation to achieve those objectives.
Murphy said: “If all that is operated through a platform that has open architecture or 700 funds, I do not care and I do not think most clients care, so long as it is an appropriately structured and priced facility.”
Murphy, who sold his business to Thinc two years ago, said he believes the market is set to consolidate in the wake of the retail distribution review, with small firms likely to struggle.
He said there is little future for small firms as the regulatory and capital-adequacy requirements will continue to impinge on the amount of time they can spend working with their clients.
Murphy said: “When I was running my own firm, I was compliance officer, pension transfer specialist and chief executive officer, all of which meant I could not spend enough time with clients. I felt it was better to become part of a bigger thing, hence the move to Thinc.”