Cofunds has mounted a defence against growing criticism of its negotiations with fund managers, saying the platform is only seeking to rectify the "imbalanced" terms offered to other propositions in the market.
The platform says it is looking for "fair" pricing to allow it to compete commercially, as the group continues its evolution plans to meet future adviser needs.
Cofunds marketing and proposition director Alastair Conway says the move is necessary in its transition from simply a fund supermarket offering, saying it has not changed its pricing model in the eight years since its inception.
"We do not want to be put in the position where a competitor platform does have a commercial advantage over us to such an extent they can distort the market," he says.
"We do not think it is good for the market, the adviser community or the fund managers because you could end up with a monopoly.
"We want to feel pricing is fair, at the moment we feel it is imbalanced and we want to get it at a balance. But we are not walking around saying they have this and we want it as well."
While Conway says the platform is seeking to have "non-confrontational" discussions, he says he is unhappy the negotiations have been aired in public.
"I am not going to negotiate with fund managers in the press. I find it disappointing that often we hear stories about what fund managers think about what we are trying to do, which are often out of line with what they tell us privately," he says.
"Nothing has broken down. In fact, we are close in a lot of cases to reaching a conclusion to commercial arrangements going forward."
Despite also facing recent criticism from advisers over its motivation, Conway says any revenue enhancements will be reinvested in the proposition to meet the growing adviser take-up of platforms following the RDR.
"Advisers are constantly saying to us they are moving their business models, because RDR is driving them this way, and we have to react to that," he says.
He argues advisers are clamouring for extra functions on the platforms - including ways to manage cash more effectively; auto sell-down to manage fees; an open pricing structure rather than bundled and model portfolios.
"The challenge is every adviser has a slightly different answer," Conway says. "To be honest, it would be more profitable for us to turn around and say ‘we don't need to evolve anymore' and stay as we are and just allow the assets to roll in. But that is not beneficial for industry and for Cofunds."
Cofunds currently has £20bn in assets under administration, more than 25% higher than at the start of the year. The platform turned profitable for the first time in its history in 2008, posting a £400,000 profit.
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