He says IFAs no longer want a platform to be little more than an execution service and many want to outsource fund selection as the day-to-day management of client portfolios becomes unworkable on a large scale.
He says: “Far from being the final solution, the business model that has been promoted by the usual platforms is actually unworkable. It is comp- letely against the growing trend of the savvy IFA community which recognises that the long-term needs of their businesses is a means of ensuring that their clients’ assets are both gathered under their control and are properly managed. The practical management of client portfolios on a traditional platform is impossible at any significant volume.
“Traditional platforms have just missed the point and perhaps have led some advisers down the wrong path.”
The Platforum managing director Holly Mackie says: “Both models are valid and will suit different sectors of the market. Some IFAs will want to provide that full service whereas others will say ‘I am not a fund manager and I am going to outsource that part of the business.'”