Experts claim platforms are “running scared” and creating investment research tools that advisers do not want out of “paranoia” in a bid for self-preservation at Money Marketing Interactive today.
The Lang Cat consulting director Steven Nelson says it is not surprising platforms keep adding investment tools that many advisers would prefer to buy in from other trusted sources given the dire warnings over consolidation in the platform sector.
He says: “There are 20-25 platforms who are consistently being told that in the future there will only be four or five, so it is not surprising they are in a battle to differentiate themselves.”
However all the panellists agree with Nelson that the predictions of consolidation have been overstated and it is important for competition that a large number of platforms survive.
Fundscape chief executive Bella Caridade-Ferreira says: “I think a lot of platforms are running scared and adding tools that they think will appeal to clients. Some of them do it well some of them do it badly.”
She says advisers will increasingly demand the ability to use the particular tools from third-party providers that they prefer and that ultimately open APIs could help to see these functions added to an IFA’s chosen platform.
Pilot Financial managing director Ian Thomas who has worked for several platform providers in the past says: “I’ve been on the other side of the fence and there is a lot of paranoia around businesses becoming commoditised so they are trying to differentiate and there is a lot of talk about the need to control the adviser’s desktop.”