Platforms in ‘land grab’ as advisers make up their minds

Platform providers are engaged in a “land grab” for market share in the race to get advisers signed up before the RDR in 2013, according to Nucleus.

Chief executive David Ferguson says advisers are conducting more comprehensive due diligence than was the case two years ago and he believes IFAs are starting to home in on their chosen platform for the long term.

He says: “If people are going to have a preferred platform rather than use a wide range, then it is important that platforms form relationships of the right strength over the next couple of years. We are seeing a land grab among providers and if platforms have not begun to form those relationships now, it will be increasingly difficult to catch up later.”

Ferguson says firms that select a platform over the next 18 months are unlikely to switch when the retail distribution review comes into effect in 2013.

He says: “Given the massive importance of the changes of the RDR, I think there is a greater awareness now that the platform decisions that are going to be made over the next few months are more likely to be the decisions that remain in place for the foreseeable future.”