Nearly half of adviser firms are adopting just a single fund supermarket or wrap over operating multiple platforms, according to a new report.
The study from CWC Research reveals 80 per cent of advisers see platforms as core to their strategy in the future – and 40 per cent are embracing a one platform model.
CWC Research senior partner Clive Waller claims the move to a one-platform model represents a huge opportunity. Waller says: “We’re seeing a number of single provider deals amongst significant IFAs.”
Waller says: “It’s much cheaper running your business around one system, one set of processes. You train your staff much more easily, everything looks the same and you make less cock-ups. It’s a sensible business process.”
He adds: “Can you imagine a car dealer selling Toyotas, Fords and Land Rovers? All the staff would have to know so much more, cope with different processes and deal with different offices. It would be much more costly.”
The study says advisers will need to adopt a “twenty-first century business model” in order to survive the future. It says the employment of platforms and apparent threats from the RDR, principles-based regulation and proposed changes to CGT will hugely impact asset managers, life companies and distributors.
Waller says: “These changes are driving the migration to a platform-based model even faster, as this is the easiest way to improve the overall client proposition whilst reducing administration costs and introducing appropriate compliance checks and audits.”
According to the study, re-registration remains one of the biggest hurdles to the full migration of non-insured collectives.
The research involved face to face interviews with 100 individuals at 75 intermediary firms with turnover in excess of £1bn.