From platform consolidation to the rise of direct-to-consumer (D2C) propositions, the Retail Distribution Review (RDR) has had - and will continue to have - a profound impact on the advisory market, according to lead RDR partner at Deloitte, Andrew Power.
Power has outlined four themes he believes have been directly impact by the Review. 1 Platform partners The platform market will consolidate to fewer than ten players, according to Power. He said an increase in competition and falling charges would lead to consolidation in the investment platform market. Assets held on platforms will grow from £200bn today to £600bn by 2018, he estimated. However, margins will be squeezed and the break even point will rise from £20bn assets under management to about £40bn, he said. As a result, Power predicted, "the intermediary platform market w...
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