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Pru says platform won’t pay off at present

Prudential has ruled out launching its own wrap any time soon, saying that it does not make economic sense.

Prudential offers its Pru fund on AWD Chase de Vere’s platform and it is going live with its onshore and offshore bonds on Portavista later this year but says it has no imminent plans to launch its own proposition.

Business director of investment platforms Carl Howard Howard says: “We are not saying never but economically it does not make sense to launch a Pru platform now. It is a very crowded market and the winners will be the ones with the most scale.

“The reason we think it is a difficult concept to launch our own platform is really that the economics are not great.

“It is a very expensive thing to do properly and then you have got to keep investing in the platform to keep it current. Unless you have large volumes of business assets under management, then the revenue generated is not enough to justify the investment.”

Asked about white-labelling an existing proposition or buying third-party technology, Howard says: “I do not think that we would ever rule anything out.”

But he says: “The sorts of things we are interested in is helping advisers and working with advisers centred on independent platforms.”

Partners Wealth Management partner James Roberts says: “I think it is so crowded in the platform market at the moment that firms cannot see where the profit is going to come from for the development costs.”

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