View more on these topics

The Platforum tips life companies for D2C platform move

Life Companies are in a prime position to offer direct-to-consumer platforms to clients who are unable to afford advice as a result of the RDR, according to The Platforum.

The Platforum says life companies already have brands recognised by consumers, a key factor in which platform they choose to invest directly with.

Speaking at The Platforum’s Direct Platform Guide launch in London last week, managing director Holly Mackay said platforms with an advised platform presence already have the technology to offer a direct option.

Mackay said: “Life companies that have a platform capability have a route to people looking for different ways to manage their finances. They seem to me to be in a prime position to pick up disaffected customers.

“Our research tells us that a big brand is among the most important thing for consumers.

“If the life companies can provide a low-cost online service and manage the potential conflicts with adviser customers, then we think they are well placed to benefit from RDR.”

Mackay adds the Platforum estimates direct platform assets under administration will double in two years to over £180bn, from its current £94.3bn.

Total UK platform assets will reach £500bn by the end of 2014 with adviser platforms reaching £300bn from the current level of £200bn, according to the Platforum.

The estimate has the workplace platform market increasing from just over £300m currently to £50bn, largely as a result of auto enrolment.

Investment Quorum chief executive Lee Robertson says: “These numbers make sense because auto enrolment will definitely fuel a vast increase in workplace platform assets. Direct and advised will both increase significantly as well.”

The Platforum AUA table

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com