Many IFAs are still trialling the platform market before committing to one or more partners, a study by Defaqto suggests.
According to the research firm’s latest platform report, IFA networks and support groups – many of which have yet to commit to preferred partners – are the next target of platform providers.
It also says providers will need to respond and adapt to IFAs' requirements if they want long-term success in the market and need to differentiate their proposition from their competitors.
“It would appear from our research that many IFAs are still trialling platform solutions ahead of further commitment,” Defaqto principal consultant Matt Ward says.
“One of the reasons for this would seem to be a confusion surrounding the USPs of each proposition and it is vitally important for providers to ensure that IFA supporters are clear about the capability of the services and systems on offer.
“Everyone who is involved in the market, whether as an active or potential participant, will benefit from understanding more fully how the market is moving and how propositions are developing, as well as finding out what the likely impact of regulatory directives on the platform market will be.”
David Ferguson, chief executive of adviser-owned wrap Nucleus, agrees with the Defaqto findings.
“It is clear advisers will determine the business model these platforms take in the future,” he says.
“Platforms will continue to evolve as advisers evolve and with changes to regulation.
“One thing that wrap has done already is break the stranglehold the life companies have had over the adviser market.”
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