Threesixty is predicting platform providers are marching towards a price war that is likely to arrive in mid 2009.
Threesixty says wrap will continue to grow slowly but steadily within the IFA sector throughout 2008.
It expects the more established fund supermarkets will expand on the breadth of their offerings with additional tax wrappers.
Partner Phil Young says: “During this period of gradual change, with newer platforms cautiously growing their distribution, there is likely to be little pressure on price.
“At a certain point, however, which could be as early as mid 2009, market dynamics will change – a small number of platforms will become dominant, IFA usage will increase and current differentiators between platforms, such as service levels, quality of administration, usability and functionality, will be less significant as the underlying technology used improves and matures.
“A successful new wrap, or one of the major players looking for more market share could easily trigger a platform price war. This threat is important to encourage innovation and competition and to keep the marketplace from stagnating.”