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Skandia looks to develop execution-only client function

Peter Mann

Skandia is looking to increase client access to its platform to include execution-only transactions such as Isa applications and top-ups.

The provider, which has today reported flat platform sales of £4.9bn for 2011, says it is in discussions to extend client access due to adviser and client demand.

This could include creating co-branded versions of the platform with adviser firms offering financial planning material, storing product valuations and new applications, allowing execution-only Isa transactions and consolidated valuations of non-Skandia investments.

Skandia chief executive Peter Mann says: “Customers are also telling us they want better online access to their investments, they want to feel in control of their investments and they want to feel better connected to their adviser through an online world.

“Many advisers also want their customers to be able to do more online.  I can only see this demand increasing as all of us expect better, faster and more personalised online experiences across many parts of our lives.”

Gross platform sales of £4.9bn during 2011 were the same level as 2010, with net client cash flow shrinking from £3.6bn to £3.3bn over the same period.

Overall funds under management decreased from £33.9bn at the end of 2010, to £33.4bn for 2011.

Adjusted operating profit, under international financial reporting standards, dropped by £37m to £103m.

Mann says: “Market conditions were challenging for retail investors during 2011 so it is pleasing to continue to generate positive net client cash flow and healthy profits.

“2012 is set to be an important year for the financial services industry as we evolve towards RDR implementation and we are feeling very positive about the opportunities ahead.”

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. One more nail in the coffin, maybe it is to become a “low quality” protection adviser (whatever that is!)

  2. John Blackmore 9th March 2012 at 9:38 am

    Disagree Ned. This perhaps is the future ? Strange thought I know but how about – An Adviser who provides advice for a fee. The client then deals direct with the platform and the fund manager manages the funds. No agency, no client ownership, no CAR nonsense. Perhaps those who decide to work this way could be called Independent Financial Advisers ?

  3. Paul Standerwick 9th March 2012 at 9:45 am

    well, i shall think twice before giving skandia more business.
    “Many advisers also want their customers to be able to do more online”
    Not this one

  4. Sorry to throw this into the ring BUT Skandia are right, having the ability to operate using a number of different models will be key to survival for both Advisers and Providers.
    They are mearly doing now what the future will bring.

    I agree with John here.

    For those who don’t want to expose clients to this model, its no reason not to do business with Skania (or any of the other platforms), just make sure that they can configure your agency/ access accordingly! AND Providers need to consider how they deal with orphan clients when advisers retire, stop trading or just can’t be bothered looking after some of their clients.

  5. Dont be fooled ladies and gentlmen, there is a hidden agenda of which RDR is the first step. I have supported Skandia for more years than I care to remember, I have also warned that it is no longer going to be IFA only since Old Mutual took over the reins, this is a further step in cutting out the IFA and eventually dealing direct with clients without liability as it will be execution only … who wins again? the banks that own these companys.

  6. Soren Lorenson 9th March 2012 at 2:39 pm

    Skandia is doing what it needs to to survive RDR. It knows that around 50% of its current IFA market will go out of business within the next 3 years. It needs to get its revenue elsewhere.

    Do I blame Skandia for this? No.
    Do I blame the FSA? Yes.

  7. Dear old client will invest in something not appropriate to his/her circumstances as they feel they will be getting something for nothing. Wow lose lots of money and have no one to blame. Thats what the RDR is all about the banks and isurance companies getting rid of those nasty IFA’s who charge money to give good advice. Wont be dealing withSkandia as no doubt they will advertise their execution only to my clients and every one elses

  8. Hmmm….this was only a matter of time, especially with the leaflets they sent out which accompanied client’s statements telling clients how easy it was to deal online. I took this up with my broker consultant but the point of the leaflets (apparently…) was to try and reduce the amount of telephone calls into their Southampton Head Office. Yeah, right.

    They also appear to believe that they own my clients.

  9. The English Parliament devolved powers to the Scots and now we have Alex Salmond wanting independence for Scotland from the English!

    If advisers ‘devolve’ power on platform to their clients they are one move closer to clients wanting independence from their advisers and don’t make the mistake of thinking that platforms don’t see this to “their” advantage post RDR. IFA’s wake up and smell the coffee!

    Skandia has always only worked through advisers -this is a dangerous move!

  10. the problem for Skandia is that they are in a world where they have more to lose than gain. they have to defend their position

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