“Being able to back up your due diligence in terms of why your chosen platform is the most suitable for your clients is especially important given the ongoing regulatory focus under the product governance, or PROD, rules.”
According to Mr Hammond there are three essential key features advisers need from a platform – integration, model portfolio tools and pension drawdown functionality.
He says: “Integration – this is the main point. Many advisers use more than one platform (for differing segments of their client bank), and each will have different processes, so the ability to start and end the customer journey in a single place will give a vastly better outcome.
“For model portfolios, [advisers want] alerts around drift, comprehensive rebalancing functionality, and the ability to set up trades in advance and execute later. For pension drawdown functionality, multiple payment dates and auto sell-down are top of the list.”
Meanwhile, he adds: “What advisers generally don’t need are the ‘bells and whistles’ tools that some platforms like to provide. For example, typically, an adviser will use a specialist cash-flow modelling tool, and a tight integration with the platform would be far more valuable than a platform-provided clumsy version of the same.”
Reporting is typically at the top of any adviser list when it comes to choosing a platform, particularly as firms continue to move towards being paperless and on-the-go advisers need information away from the office environment.
Mr Hammond says: “One adviser recently told me he looked for ‘financial strength, functionality, competitive pricing, white labelling, support including adviser tools and professional client facing reports.
“Reporting is a key area that is at the forefront of an adviser’s mind and is just as important to institutional clients and indeed, the platforms themselves, when looking to their technology supplier for innovation.”
Ms Kenny agrees: “Many clients now expect reporting and other tools to be available through their mobile devices and therefore the ability to view portfolios through an app is becoming increasingly important.
“The ability to link or integrate to financial software from other providers can also be highly desirable.”
She adds, however, that one of the most critical elements is the longevity of the platform and business strategy of the platform provider.
With so many platforms in operation, consolidation has long been discussed within the industry and some major mergers have already taken place – Aegon and Cofunds, Skandia and Selestia and Standard Life and Axa Elevate, for example.
Mr Neilson agrees that this is also something advisers consider. “Advisers need to know that the platform or platforms they’re partnering with are going to be in it for the long haul – this means understanding issues such as a platform’s financial strength, its approach to data security and how effective it will be in supporting advisers and their clients both now and in the future.
