Selestia Investment Solutions aims to increase the assets on its platform from 30bn to 50bn within five years.
UK business unit chief executive Brett Williams says platforms must have deep pockets and be able to manage their scale. He says many entrants will be unable to compete on one or both of these elements.
Williams says many traditional life and pension comp-anies fail on wealth management. He says: “You cannot gain share if your technology is not scaleable. I think it is possible that we will have 50bn on the combined platforms by 2013.” Williams says IFAs see traditional life offices as transact-ional businesses while platforms should aim to build relationship-based propositions.
He says: “It is harder for new entrants because they have got to have scale and that is expensive. Traditional players can afford it but are they what IFAs want? You have to work to achieve that.”