Hargreaves Lansdown declined to comment, as has the FCA.
Graph: A number of platforms have seen their share price plummet since the start of the year
Source: FE Fundinfo
It is too early to say whether these company’s shares will continue to plummet, Barrett said, adding: “The biggest driver [for the drops], especially in the direct space, will be the cost of living crisis.
“[It depends on] just how much money people have got to invest and to save, and the most sensible thing to be cutting back on is your £200 a month to Hargreaves.”
Customers are also moving towards passive funds, which, as they are not actively managed, are much cheaper than most of the funds offered on Hargreaves' platform.
Meanwhile, passive fund house Vanguard has seen its UK clients soar 83 per cent in the year since it launched its advice proposition.
During 2021, according to the company, 183,400 people became clients of Vanguard Personal Investor, an increase from the 100,000 seen in the year before.
The company launched its advice service in April 2021 charging an 'all-inclusive' ongoing fee of 0.79 per cent.
Barrett said the full impact of the cost of living crisis on platforms and asset managers is not yet known.
“It is certainly a headwind which [asset managers] need to be aware of.
"Time will tell exactly how long it all goes.”
sally.hickey@ft.com
