View more on these topics

Platforms: We must do more to help advisers on due diligence

Platforms must do more to provide transparent and consistent information to aid advisers in their due diligence processes, say major providers.

In a debate at the annual Personal Finance Society conference yesterday, Old Mutual Wealth customer director Carlton Hood said platforms need to become  “more open” in the information they provide to advisers.

He said: “There is the issue of some commercial sensitivity but if an adviser is bidding for your business and they are lining up two or three providers and asking the same questions, you have got to be prepared to enter into a spirit of confidentiality with them and provide information that is useful.

“If you don’t provide the information it is probably going to be to your detriment in the selection process.”

Aegon UK managing director of retail and intermediaries Duncan Jarrett said most advisers ask similar questions, so platforms should offer “off the page” information that can be provided “almost immediately”.

Zurich UK life chief executive Gary Shaughnessy said platforms need to provide consistent information to allow advisers to compare between providers.

He said: “If I have a different measure of an operational function to other providers, that is not very helpful. That is our problem to deal with so advisers get consistent information to compare platforms.”

He added that platforms need to provide separate information on what is of benefit to the client, and what is of benefit to the adviser.

Last month, FCA technical specialiast Rory Percival warned some advisers were choosing platforms based on their suitability for the advice firm, rather than for the client.

Also at yesterday’s debate, providers said in future platforms will extend beyond investments to potentially incorporate housing wealth, and will introduce capability to allow consumers to transfer pension funds online.

Hood said: “We have got to extend beyond the provision of investments, into tools and helping people put funds together in a way that gives an income.

“We were talking just last week about the changes to inheritance tax and decumulation – if you are wealthy and want to hand money to the next generation, it sort of makes sense for you to take money out of your house before you start spending your pension. What are the implications of that for a platform – could you see an equity release mortgage on a platform?”

Jarrett added: “We have to look at a person’s total wealth to determine their income in retirement, and whether that includes the adviser looking at their property or the property being included in the platform, it’s the same thing.

“Allowing consumers the flexibility to be able to transfer pension funds online will have to come. It is just a case of when, because it would involve a great deal of work.”


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. I agree that platforms need to do more to help with platform due dilligence, what I dont agree with is the perception that platforms are in place for the benefit of clients other than to reduce the administration time of their adviser.

    Advisers run businesses, and those businesses need to be efficient. One of the best ways to achieve this is through the use of a platform.

    I am not nescessarily sure as to whether clients care whether the platforms offers tools or facilities, they just want to know that their assets are “safe.”

    The rest of the tools are for the benefit of the adviser which ultimately benefits the end client through time saving.

    Of course you could argue that the due dilligence is being done to ensure that the client is getting the best value for money, in response to that I would say that just becuase something is cheap, it doesnt necessarily mean it is good. That cheaper alternative may not be able to intergrate with the advisers back office systems thus making his or her business inefficient and spending more time doing the basics whcih will ultimately cost the client.

    I think that a degree of sense needs to be applied to these checks, and the regulator need to remember that advisers want to be efficient in order to best service their clients.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm