Platforms should offer structured products in order to comply with whole-of-market RDR regulations and capitalise on a growing market, according to Lowes Financial Management.
Managing director Ian Lowes, who is also founder of StructuredProductReview.com, says wraps and platforms will have to start offering structured products or risk losing out to their rivals.
With demand for structured products surging - sales increased 47% in 2009 with nearly 1,000 products on the market - their availability on platforms will help advisers comply with the RDR's whole-of-market philosophy, says Lowes.
"With the FSA's RDR statement that to remain independent all adviser will have to have sufficient knowledge to be able to make recommendations on structured products, you are looking at an area of the market that has moved quickly into the mainstream," he adds.
"And the more people that start to understand what structured products are and what they can do for their clients, the more they will be utilised."
Lowes says platforms should take their lead from Novia, which yesterday announced it had entered the structured products fray by embedding the product listing from StructuredProductReview.com into its own website.
The move gives Novia users access to the website's research and comparison facility for all structured products on the platform.
"The great advantage of using a platform for IFAs is that all of a client's investments can be held in the one place," adds Lowes. "Platforms without that capability may find that as more and more IFAs begin to use these investments, they could start to lose out to those that can."
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