Total assets held on corporate platforms could dwarf assets on adviser platforms in the next five years, according to The Platforum managing director Holly Mackay.
At the Tax Incentivised Savings Association’s wraps and platforms seminar in London last week, Mackay said in the wake of a number of new entrants to the corporate wrap market, many intermediaries are now looking at employee benefits as an alternative route to advice.
In March 2010, Friends Provident launched its corporate investment platform aimed at employee benefits consultants and trustees in the unbundled pension market and Zurich is expected to roll out its corporate wrap in the third quarter this year. Both are powered by FNZ.
In March, Aegon confirmed plans to enter the platform market later this year with its at-retirement and workplace savings proposition, to be powered by GBST.
Mackay says: “It may well be the case that in five years, corporate wraps dwarf the amount of total assets held on adviser platforms, even though the current interest is negligible.”
Forty Two Wealth Management partner Alan Dick says: “I am not convinced that the corporate wrap area will be a success. A lot of people, rightly or wrongly, have a mistrust of their employer and, as a result, would not be attracted by this sort of proposition.”