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Platform growth stagnant in Q1

The Platforum says figures for the first quarter of 2011 show stagnant growth in the platform market with an asset under management rise of 3.62 per cent.

In its quarterly (plat)Form guide which will be released later this month, the consultancy firm says total platform AUA rose from £146.29bn in Q4 2010 to £151.58bn in Q1 2011.

The largest percentage increase came from Wealthtime, which grew assets under administration 80 per cent from £100m to £180m. James Brearley showed the worst percentage change, falling 1.33 per cent to £740m. Fidelity showed the biggest growth in absolute terms.

The Platforum managing director Holly Mackay (pictured) says platforms have not taken into account the demands of IFAs and that a second generation of wraps could emerge which are focused on cost rather than service.

She says: “Platforms have not listened to what IFAs really want their role to be and expensive features are turning IFAs off. There will be more focus on costs which could lead to a ‘wrap-of-wrap’ model emerging where it is all about price, not service.”

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