Towry CEO Andrew Fisher says the platform market is over-crowded with too many players lacking scale and predicts only a "few winners" will emerge from a wave of consolidation.
Fisher, speaking today at The Platforum's conference, says there are around 35 too many players in the current market and expects the frenzied competition to drive charges down to dramatic lows.
"In the future there will be a clear differentiation with a few winners and a lot of losers," he said. "Low cost providers could charge 10 basis points for a platform."
"If you are business that likes high margins - such as life companies - you are probably in the wrong game."
He added the overcrowded state of play will result in "serious consolidation" with the future market holding just four or five players.
Fisher said Towry uses both in-house systems and outsourced solutions for its administration needs, with the wealth provider building its own SIPP delivery capability but looking outside the company for its portfolio construction.
He thinks firms need considerable amounts of capital to operate in-house platforms.
The Towry chief went on to outline some of the "barriers to efficiency" in the current market, including high charges with little added value and a lack of transparency resulting in customer confusion.
He also said customers should not have to pay for platforms, although he was careful to draw a distinction between platforms and wraps.
Addressing the well-publicised problems Towry has faced with delays in transferring assets belonging to former Edward Jones clients, he said the industry faces "big issues" with re-registration and should look to the FSA for assistance.
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