She says life company platforms appeal to IFAs that view tax wrappers as a commodity and, with the number of life office platforms tipped to rise to four, this market will become oversaturated.
Standard Life, Axa and Aviva already own platforms and Aegon hired ex-UBS Wealth Management executive director Tim O’Connor in June last year to sound out a potential launch into the wrap market.
Mackay says: “The challenge will be to differentiate and win those IFAs who see tax wrappers as commodities and do not mind the idea of partnering with a provider platform. There is a significant yet finite number of these IFAs and we think four platforms of this type are too many.”
She says Transact is right to be planning price cuts, as Money Marketing revealed last week, as she says this is the major gripe that IFAs have with the otherwise popular platform, according to feedback on her website.
Standard Life head of communications Mark Polson says: “Most bases are covered for IFAs, but whether there are too many life company wraps is for the market to judge.”
Thomas and Thomas managing director Darren Lloyd Thomas says: “There are too many life company platforms. It really comes down to functionality and cost.”