Figures obtained by Money Marketing show that over the course of the year to May 2008, Cofunds saw the highest outflows to Transact at just over £6m. The next highest outflows were to Pershing Keen Nominees at just over £4m. Pershing Keen runs back-office custo- dian services for asset mana- gers and platforms, including Seven Investment Management.
Cofunds also saw outflows of around £3m to First NZ, which powers the Standard Life wrap and Axa’s fledgling Elevate proposition.
Cofunds communication consultant Richard Eats says: “These outflows must be viewed in the context of inflows tot-alling £1bn per quarter.
“The outflows were to platforms compatible with a fee-based advice model. We are currently testing our fee-based service against big volumes of business so that our systems are robust and we hope to be ready to launch by the end of this year or early next year.”
Financial Technology Research Centre director Ian McKenna says: “The figures sug- gest that there is not a huge amount of money circulating between platforms, which is worrying, considering the FSA’s requirement for advisers to regularly review the platforms they use. It suggests that the market is not as liquid as the regulator would perhaps like.”