He says he is concerned that consumers may not fully understand the regulatory risks involved in investing in unregulated products available on many platforms. He says platforms were designed as business-to-business tools and fund firms do not intend the public to use them.
Billingham says: “IFAs have been very cautious about giving clients access to platforms so it is only a small problem right now but in a year’s time it could be a very big one.”
Transact says it now requires evidence that a client has completed a sophisti- cated investor certificate or a Cobs4 notice before they can trade directly in unregulated collective investments.
Head of marketing Malcolm Murray says: “The Transact-Online program identifies whether a form has been completed and if it has not, then the trans- action will fail.”
Zen Financial Services IFA Mike Pendergast says that most advisers only give clients access to valuations.
He says: “I do not see the point in giving the client access to do what the IFA should be doing.”